IV - The Thai Automotive Industry And The Asean Industrial Complementation Project

Summary

Thailand is one of the Southeast Asian countries in which the motor vehicle plays a significant role in socio-economic development. The automotive industry has numerous components and has wide ranging implications. Depending on vehicular construction and usage patterns, the automotive industry could be classified under (a) passenger cars (b) trucks and commercial vehicles — both light and heavy, and (c) buses. There is considerable interchange in the use of these different categories of vehicles, and commercial vehicles could double as goods and passenger transport depending on locality and need. At the same time, there is an equally thriving sector for the two-wheeler such as motor-cycles and scooters.

In terms of the country's balance of trade, the costs resulting from importation of these vehicular units were staggering. In 1972, for example, such vehicles constituted the fifth major import item for the country in terms of value. If a part of the energy imports (namely petroleum and related products) were regarded as consumables for these motor vehicles, then it is beyond doubt that the policy makers should take more than just a cursory interest in this area, with a view to modifying the usage of motor vehicles in a manner best suited for the country.

The response of the Thai authorities has been to press for a reduction in the outflow of valuable foreign exchange earnings, to help the industrialization of the country, improve the level of technical skills, and create sufficient jobs for an ever growing population of employables. The automotive industry has been realized as one which could be structured to fulfil all these requirements, thus the strategy of creating a viable automotive industry in the country. The gap between aspiration and achievement however continues to plague the various governments which have been ruling the country and the dream of an integrated automotive industry remains unattainable while the root problems which have plagued this industry remain unsolved.

This paper examines five aspects of the Thai automotive industry.