Thailand unrest forcing Toyota to rethink investments

bkk-protests

The political gridlock currently gripping Thailand doesn’t look like it’s about to end anytime soon, with anti-government protesters refusing to participate in elections that PM Yingluck Shinawatra has called for, adamant that an unelected “People’s Council” oversee reforms. The government, which enjoys wide rural support, won’t yield so easily. Meanwhile, capital city Bangkok has been disrupted by a “shutdown”.

This instability may cost the Land of Smiles further investment from Toyota, Reuters reports. The largest car manufacturer in Thailand may reconsider investing up to 20 billion baht (RM2.02 million), and could even cut production if the political unrest persists, according to Kyoichi Tanada, president of Toyota’s Thai arm.

Toyota produces 800,000 vehicles a year in Thailand now, and had plans to increase annual capacity by 200,000 vehicles a year over the next three to four years.

toyota-5-million-thailand

“Our new investment in Thailand may not happen if the current political crisis goes on longer. For new foreign investors, the political situation may force them to look for opportunity elsewhere. For those that have already invested, like Toyota, we will not go away. But whether we will invest (further) or not, we are unsure.

“After the shutdown, we have fewer visitors going to our showrooms. We are ready to cut down our car output if we are affected by the political situation,” he added.

Toyota produced some 850,000 cars in Thailand last year, with 445,000 of the total sold domestically. This year, the big T aims to sell 400,000 cars domestically and export 445,000, it was revealed.

Car sales in Thailand fell 7.7% to 1.33 million vehicles in 2013, according to the Federation of Thai Industries. Sales are expected to plunge a further 13.6% to 1.15 million this year due to weaker consumption and slow economic growth, Toyota predicts.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • A strong reminder to our gov of what’s to come if things stay as it is!

    Like or Dislike: Thumb up 27 Thumb down 42
    • Pendek on Jan 24, 2014 at 1:04 pm

      Have you heard MAGERAN?

      Like or Dislike: Thumb up 8 Thumb down 0
      • letstorque on Jan 24, 2014 at 5:42 pm

        No more MAGERAN.
        Now it is MKN.
        Majlis Keselamatan Negara.

        Your info outdated

        Like or Dislike: Thumb up 2 Thumb down 0
    • MycarMylife on Jan 24, 2014 at 1:44 pm

      My Gov , will never listen , will never learn , will never change , too much comfort zone entrenched already how la ?

      Like or Dislike: Thumb up 16 Thumb down 5
    • more like ‘strong reminder to our people if they’re taking their action to the streets’

      Like or Dislike: Thumb up 53 Thumb down 4
    • Dr M and Cronies on Jan 24, 2014 at 6:36 pm

      HOW IRONIC:

      Thailand – Good business policies where all carmakers setting up plant there, but Democracy too strong until RAKYAT stand up for their rights against their Govt affecting businesses.

      Japan – ALL good except for mother nature issues affecting businesses.

      Malaysia –
      No Riots, Obidient Rakyat yet Full of resources – but LOUSY GOVERNMENT & POLICIES DUE AND TOO MUCH CRONYISM affecting businesses.

      Like or Dislike: Thumb up 53 Thumb down 43
      • brownkids on Jan 25, 2014 at 2:45 pm

        Heh…. Thailand have ‘Good Business” policies …hehheheh,rofl. . . you been there? already done trading there?
        Thailand cronies and bribe are 150% worst then M’sia, they even do it in public…

        Like or Dislike: Thumb up 37 Thumb down 4
  • well, u are always welcome to invest in Malaysia ;-)

    Well-loved. Like or Dislike: Thumb up 58 Thumb down 4
    • Jayden Koo on Jan 24, 2014 at 12:32 pm

      Invest at Boleh land? You have to fill up cronies pockets before you can.further up the business.

      Like or Dislike: Thumb up 36 Thumb down 50
      • Wisdom on Jan 24, 2014 at 3:03 pm

        We are concern too much on how they work. How they spent the money. At the end of the day, what we want to see is result.
        However, they have focus is to reduce crime rate. How to reduce crime when rallying is the best way to seeds crimes?
        The rest, Malaysian is a wealthy bunch of people who willing to buy Vios @ 90K. We can be glad, or we can ask for more. Hopefully not on the streets..

        Like or Dislike: Thumb up 22 Thumb down 3
      • brownkids on Jan 25, 2014 at 2:47 pm

        Still thinking only in Boleh land got chronies and Thai no-chronies and no-bribing…

        Sooo many ppl talk about other country nowday but dont even know anything about it… Only know from mr.google/pusatsumberfacebook…jesh~

        Like or Dislike: Thumb up 18 Thumb down 3
    • Brainstorm with Toyota Malaysia.
      Expand factory in Malaysia, CKD made in Malaysia + EEV.

      Maybe make use of Perodua Daihatsu international Standard Factory 2014.

      Like or Dislike: Thumb up 31 Thumb down 1
    • Heskey on Jan 24, 2014 at 2:20 pm

      In Malaysia we have bersih and black rallies. Toyota may think twice before they decide to come in.

      Like or Dislike: Thumb up 28 Thumb down 33
      • Dato' Jack on Jan 24, 2014 at 3:52 pm

        Malaysian street protester not hard core compared to Thai or Indo..

        Hardcore supporter will join for 1 or 2 times in a month and it MUST be on WEEKEND, weekday for sure few only (busy with work n meeting). more than that, they can’t promise. So many other commitment for others job/family/personal matter to do. think and same time worried being caught.

        For example, after GE 13, for 1st 3 relies consider full house. next relies become less people, till the haze take place, than u can see so much less.

        we live under comfort zone for soo long. anyway our gov, not that bad before.

        Like or Dislike: Thumb up 26 Thumb down 4
        • brownkids on Jan 25, 2014 at 2:49 pm

          agreed… we dont have that kinda hard suppporter who can sit/camp in one spot for a week
          >.< all still thinking about work

          Like or Dislike: Thumb up 3 Thumb down 0
    • Low Budget on Jan 24, 2014 at 4:50 pm

      First, they have to negotiate for a ‘negotiated tax’ rate. You see every car manufacturer will have different tax rate! I think Toyota might re-locate all manufcturing to Vietnam or Indonesia rather than Boleh Land.

      Like or Dislike: Thumb up 2 Thumb down 10
  • kukunan on Jan 24, 2014 at 12:30 pm

    come and take a NAP in malaysia, we can CBU the ladyboys for u

    Like or Dislike: Thumb up 22 Thumb down 2
  • You see !?!?

    This is what I was talking about with foreign companies or FDI. If they don’t like, they’ll just leave. In the end, only the local people will rugi.

    GG lah Thailand, good luck to you.

    Like or Dislike: Thumb up 38 Thumb down 7
    • sudonano on Jan 24, 2014 at 1:01 pm

      And if our people were smart, they’d make the NAP and all investor friendly, and welcome all those running out to here. If they were smart.

      Which I am doubting after what’s been happening over the last few days and weeks.

      Like or Dislike: Thumb up 25 Thumb down 3
  • Errr….Mr Toyota, down here :)

    Anyways, all the major Japanese companies ae moving away from China due to political tension and now Thailand. Currently, most major Japanese company are investing in Vietnam and Indonesia so it is easier for them to sell cars around the South Asia region. With Thailand’s unrest, Malaysia should start to at least advertise ourself to foreign investor, We can’t just sit here and wait for nothing, be warn that there is a neigbour that are moving faster than us economically and industrialy and also provides more man power at a cheaper cost……Indonesia.

    Like or Dislike: Thumb up 26 Thumb down 5
    • u say easy to do business in indo? there company bribe gov people to make easy for them to do business..read their paper n indo people comments!

      Like or Dislike: Thumb up 26 Thumb down 4
      • How much difference is that compared to Malaysia? there still stained money running like crazy. Indonesia has both the market demand and the production capabilities, sort of a mini-China. They are also readily up and coming and as a economic power haus, they can easily overtake us by sheer volume alone. Malaysia I beleieve have to work smart and mimick what is done by our little neighbour south….just in a larger scale.

        Like or Dislike: Thumb up 6 Thumb down 19
        • armandd on Jan 24, 2014 at 7:10 pm

          Have you ever been to Indon? Their officers will ask for ‘duit kopi’ even before you leave the airport, to make it easier to clear your luggage. That’s how bad the corruption is in Indon.

          Like or Dislike: Thumb up 28 Thumb down 2
          • normandy on Jan 25, 2014 at 12:46 am

            Vietnam is a much better place to invest. Interestingly, Vietnam is pretty safe too.

            Like or Dislike: Thumb up 2 Thumb down 6
          • brownkids on Jan 25, 2014 at 2:53 pm

            >.< damn…. Are all M'sian never ever go to other country before? but talk like the know everything…

            One more thing dont go for vacation, its different thing holidays/vacation or living

            Like or Dislike: Thumb up 15 Thumb down 0
    • ‘U need more reading..it not just bcoz political tension between china-japan or china – korea but cost doing business in china rising too fast especially salary..that’s y samsung already start making their phone in vietnam..in auto industry car maker hard to stop production in china bcoz of higher tax for imported car…

      Like or Dislike: Thumb up 4 Thumb down 2
  • Jason on Jan 24, 2014 at 1:36 pm

    I hope our Kangkung PM will wake up and crab this opportunity.

    Like or Dislike: Thumb up 6 Thumb down 24
    • Perhaps he was still sleeping after eating Water Spinach Crab (Kangkung masak ketam).

      Like or Dislike: Thumb up 6 Thumb down 19
  • Green on Jan 24, 2014 at 1:47 pm

    When More International brand Come to malaysia and Produce car, Either for Local Supply or Export.

    This definitely boost Malaysia Economy.
    – More tax government can earn overall.
    – Bloom of Local Vendor for Car Parts Supply.
    – increase of export, more busy at Harbor.
    – More Job opportunity for Malaysian.
    – ranging from M&E engineer to Management, to field u may not even expect.

    Welcome and do Look Serious At NAP 2014.
    Welcome to Malaysia.

    Like or Dislike: Thumb up 26 Thumb down 0
  • albag on Jan 24, 2014 at 1:50 pm

    Definitely not Malaysia since governed by bn cronies.. Myanmar could be the next best choice

    Like or Dislike: Thumb up 4 Thumb down 33
    • AUSNSW on Jan 24, 2014 at 3:20 pm

      Myanmar is definitely a good country now.However,Malaysia is also a good choice for automotive manufacturing sector.

      Like or Dislike: Thumb up 16 Thumb down 1
      • Syiok Sendiri on Jan 25, 2014 at 1:08 am

        Not when you have so many unnecessary red tape created by you know who! It’s not nice doing business with you hand tied up with kangkung.

        Like or Dislike: Thumb up 1 Thumb down 10
  • Henry on Jan 24, 2014 at 1:53 pm

    You can always relocate to Malaysia, the Land of Boleh. We welcome you. LoL.

    Like or Dislike: Thumb up 16 Thumb down 0
  • slk3879 on Jan 24, 2014 at 1:54 pm

    come on, 20 billion thai bath = 2.02 million RM only?

    Like or Dislike: Thumb up 3 Thumb down 8
  • Short term suffer for Thailand after that everything will be better.
    Toyota will still stick on Thailand.
    Don’t hope that they will pump money here because we have too many Kangkung university minister.

    Like or Dislike: Thumb up 8 Thumb down 21
    • ya rite short term suffer…after this gov tumbang..new gov naik…the next day new gov tumbang..new gov of new gov naik..the next other day the new new gov tumbang..the the new new newer gov naik…….to be continue..the cycle will continue

      Like or Dislike: Thumb up 22 Thumb down 3
  • Toyoda on Jan 24, 2014 at 2:15 pm

    Sad toyota malaysia only export 20 hiace. But they import thousand yearly.

    Like or Dislike: Thumb up 3 Thumb down 0
  • This is what happens if rakyat wanted to take their dissatisfaction to the streets. U have the opportunity to decide every 5 years. make full use of it, hatever the decision accept it. Then try again in the next election.

    Like or Dislike: Thumb up 25 Thumb down 1
    • Donnatello on Jan 24, 2014 at 4:58 pm

      you are right! please vote every election. whoever win, you still need to keep them on their toe, because anybody can looks so clean before they have the power and will be kangkung too after they get hold to power. if your choice did not make it this time, vote next time, and next time. if after 3 elections your choice still not winning, then you have the option to migrate. if after 3 elections you still cannot make yourself internationally worth for you to migrate, then its your faults!

      Like or Dislike: Thumb up 17 Thumb down 0
  • Toyota, please invest more to Malaysia. Here are the benefits.
    – can sell same car with reduced spec (save on cost)
    – same car but more expensive price (increase profit)
    – kangkung cronies earn more $$ (you help me i help you)
    – help Sam Loo boost his sales, so that he can hv more free time talk rubbish here :D

    Just kidding lah, don’t take my komen too series :) cheers!

    Like or Dislike: Thumb up 2 Thumb down 10
    • What the different when they make car in thai? U go toyota/honda/nissan/mitsu thai website..go check the spec.n then u know..

      Like or Dislike: Thumb up 4 Thumb down 2
  • Denaihati on Jan 24, 2014 at 3:32 pm

    we still far from Thailand situation but this is something that we have to learn.

    Like or Dislike: Thumb up 10 Thumb down 0
  • Archangel on Jan 24, 2014 at 3:58 pm

    Crisis in Thailand is getting critical thus make the investor feel insecure.

    Like or Dislike: Thumb up 10 Thumb down 0
  • Tarro on Jan 24, 2014 at 4:18 pm

    We always welcome you but knowing that it still under UMW, i am not sure either the government or policies will accept you honestly.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Thompson on Jan 24, 2014 at 4:20 pm

    We must be thankful that our Malaysia wont be worse like that, but we still must learn their mistakes and beware of foreigners trying to drop our country’s name. And also, some boring local people trying to make chaos.

    Like or Dislike: Thumb up 17 Thumb down 0
  • kambinganas on Jan 24, 2014 at 4:34 pm

    Syukur Malaysia masih aman! ;-)

    Like or Dislike: Thumb up 16 Thumb down 1
  • Just A Nobody on Jan 24, 2014 at 5:08 pm

    A clear example of how important political stability is in terms of securing and keeping foreign investment to a country. Great reminder as well for us Malaysians. May we all continually blessed with peace, harmony and prosperity. Amen.

    Like or Dislike: Thumb up 21 Thumb down 0
  • armandd on Jan 24, 2014 at 7:14 pm

    So this is what the Bersih people want. Only bersih supporters, not PR.

    Like or Dislike: Thumb up 14 Thumb down 2
  • Engineer on Jan 24, 2014 at 11:26 pm

    What happened to the toyota camry recall scam write up?

    Like or Dislike: Thumb up 0 Thumb down 0
  • norman on Jan 25, 2014 at 12:35 am

    Then Honda Malaysia,BMW Malaysia is what ah?Thailand and Indonesia doesnt produce own cars but instead rely on local spec Toyotas as their main vehicles.The protesters unhappy because of Thaksin and of course his sister also.one of the target.But currently ive heard many are injured also,now Army nvr gave chance.You strike they strike back and its real bullets ah unlike here still using water gun for the Bersin demo…That side you try to kick or fight with the police and see what happens..here still can say Polis babi.anjing,Barua and can still kick polis head..

    Like or Dislike: Thumb up 15 Thumb down 0
  • norman on Jan 25, 2014 at 12:42 am

    One more im sure most of us dont really like opposition but because of some big headed BN politicians that forgotten their promises rakyat began to turn to PR.Probably some of the YB overlook at some rural.areas.where there are lots of poverties.These type of YBs that tarnish the whole party..i understood

    Like or Dislike: Thumb up 4 Thumb down 6
    • Syiok Sendiri on Jan 25, 2014 at 4:00 am

      After 50 years plus ruling, overlook is too gentle of a word. The perfect word is they don’t give a rat arse for the man on the street or in the kampung. They wanna get rich at all cost, at our cost

      Like or Dislike: Thumb up 1 Thumb down 5
  • EnergyAnalyst on Jan 25, 2014 at 7:52 am

    I think malaysia has through the new NAP employ a bit of tactic of Sun Tzu’s Art of wall

    It is the first time when enemy are clear and yup play vague

    Vague and broad when you add a e in EV to make is EEV that capture all segments

    Vague and broad again when you offer customised incentive . In that way it is like telling dear x car maker what did other countries offer you to ask u to come in investing besides the obvious ? I can match that with extras or top that even if you scratch my back and I will scratch yours . Scratching backs is an international practise . You should read up about how Daimler got caught bribing officials in China, Russia and about 20 other countries in April 2010 in connection with Mercedes cars, buses and trucks. See this http://www.justice.gov/opa/pr/2010/April/10-crm-360.html.

    Like or Dislike: Thumb up 0 Thumb down 0
  • EnergyAnalyst on Jan 25, 2014 at 7:59 am

    Submitted a broken link above

    Try this one
    http://edition.cnn.com/2010/CRIME/04/01/daimler.bribery/
    And yes Thailand is one of those countries

    Like or Dislike: Thumb up 2 Thumb down 2
  • Ah Chong on Jan 25, 2014 at 6:38 pm

    Thailand always change govt, but they don’t change policies. Malaysia never change govt but they constantly change policies. If you’re an investor which country would you choose? Definitely Thai. Malay is lowsy.

    Like or Dislike: Thumb up 3 Thumb down 8
  • Zipppp Din on Jan 25, 2014 at 7:23 pm

    Is toyota thinking investing in malaysia.I dont think so.
    All top Management will be UMNO cronies first.
    51% cronies ..all discussand big moneys goes to them first.

    Like or Dislike: Thumb up 1 Thumb down 7
  • Azahari on Jan 26, 2014 at 1:58 pm

    Please invest in Malaysia mr Toyota. We welcome you.

    Like or Dislike: Thumb up 3 Thumb down 1
  • Well, Toyota always welcome to Kangkung Land but be prepare for the Electric hike 15%, High Labour costs in Malaysia comparison to the industrialised countries. Also world most expensive cigarette & liquor, cheers.

    Like or Dislike: Thumb up 3 Thumb down 2
 

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