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Automotive industry in Thailand


As of 2015, the Thailand automotive industry was the largest in Southeast Asia and the 12th largest in the world. The Thailand industry has an annual output of near 2 million vehicles (passenger cars and pickup trucks), more than countries such as Belgium, the United Kingdom, Italy, Czech Republic, and Turkey.

Most of the vehicles built in Thailand are developed and licensed by foreign producers, mainly Japanese and American but with several other brands as well for CKD production, notably BMW and Mercedes. The Thai car industry takes advantage of the ASEAN Free Trade Area (AFTA) to find a market for many of its products. Thailand is one of the world's biggest markets for pickup trucks with over 50 percent market share for one-ton trucks.

The first car imported to Thailand was brought by the royal family around 1900. Since then, Thailand has proceeded to gradually develop a viable industry. Compared to the import substitution efforts of other Southeast Asian nations, Thailand's government has generally allowed a larger role in guiding development to alliances of manufacturers themselves.

Many other countries have practiced a centralized approach, while some (like the Philippines) resorted to clientelism and favoritism. This is not to say that corruption has been entirely absent, with car manufacturing companies being involved in the Suvarnabhumi scandal, for instance. Several political families are also of prominence in manufacturing, often benefiting from insider knowledge and the occasional political privilege. Thailand also provided efficient governmental incentives and support for the lesser component manufacturers, enabling them to develop on pace with the multinationals.


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