The gap in car output between current regional leader Thailand and Indonesia narrowed to its smallest ever last year in percentage terms, and Indonesia’s production may push past Thailand’s within a decade, says a Reuters report.
According to ASEAN Auto Federation, Gaikindo and Federation of Thai Industries (FTI) data, Indonesian auto production grew seven percent in 2014 to 1.3 million vehicles while that of Thailand dropped 23% to 1.88 million units – considerably below the projected 2.1 million.
This put Indonesian output at 69% of the Thai total, compared to 43% in 2012. Cited reasons for the Thai slowdown last year include political turmoil and shrinking domestic demand.
Consulting manager at Ipsos Business Consulting’s Bangkok office Chukiat Wongtaveerat told Reuters that several carmakers, General Motors and Tata included, have been lured to set up shop in Indonesia, which could help the republic’s car output overtake Thailand’s in the next seven to 10 years. Indonesia is already South East Asia’s largest auto market.
But the Land of Smiles could bounce back – an FTI Auto Industry Club spokesperson told the news agency that this year, Thai production is predicted to jump 17% to 2.2 million vehicles.
“Even when Indonesia overtakes Thailand’s automotive production output, Thailand will still be a dominant player, with its component manufacturers providing many of the parts required by the assemblers in Indonesia. The challenge for Indonesia is to raise the quality of its product to be suitable for the global market, and to develop its domestic supply chain to match the quality of Thailand,” Chukiat told Reuters.
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Inb4 terima kasih Dr M bapa automotif Indonesia and Thailand
Inb4 salah Proton
NAP never against protection.
Example? Dun talk kok
mak kau tak ajar cari info sendiri kah?
Proton company “Earth Prince” and Dr M is their bapa. Jangan persoal!
Can Madani from MAI explain why we are losing billions to Thailand every month and now, to even Philippines!
Malaysia was on its way to becoming the Detroit of Asia in the 90s. But the AP system cost us hundreds of billions in ringgit in investments from car companies who moved to Thailand and Indonesia. Car companies got fed up with Malaysia’s MITI for protecting Proton and telling other companies what to price their cars. They got sick and tired of the AP system and how genuine brands cannot get enough APs to import their cars in (like Mercedes, BMW and Honda).
They thought that if they set up their brands and plants in Malaysia, they knew they had to share the pool of APs with the cronies and they knew 90% of all APs go to the cronies. They all moved their operations to Thailand making it the AutoCity of the world.
Recently GM announced that they rolled out already 1 million cars from Thailand. Imagine if GM was in Malaysia and we taxed GM RM10,000 per car. Calculate that with 1 million cars. Just from GM alone, we lost Billions in USD. Imagine what will the amount be from other car companies if they had set up in Malaysia?
We lost hundreds of billions of ringgit in investment and trillions of ringgit from jobs lost. If Malaysia was the autocity of Asia, hundreds of thousands of jobs would have been created for Malaysians. We lost all that. Trillions of Ringgit and hundreds of thousands of jobs.
Now, Thailand is benefiting from this trillions lost. And today, Philippines and Indonesia pulak are benefitting from our crony practices.
A word of caution to Madani and the idiots in MITI, Malaysia might even lose existing companies who are already CKDing in Malaysia. BMW, Mercedes, Nissan, Honda and Toyota might even close up their plants in Malaysia to open up in Thailand. Now Indonesia and Phillipines included
This is so worrisome. Despite Thailand having an unstable economy with riots and bombing, no stable government, yet car companies still prefer Thailand to Malaysia. Makes us wonder…..what is wrong with Malaysia?
Kesian still think its politically based?
Then why car manufacturers would rather be squeezed by Indon and Thai government and not ours?
MITI and its Minister is stupid….
So Indonesia puts out 1.3 Million and Thailand is expected to could hit 2.2 million next year.
So anyone with numbers for Malaysia’s total production? last I read, it was hovering around the 700,000 mark.
Considering we started making cars way back in 1960s with Volvo’s plant in Shah Alam.
Next to eclipse us will be Vietnam, and finally, who knows, Singapore.
Singapore? 40% living in Singapore are PR and migrants workers. Import more migrant workers for auto assembly? Just go to their hotels or shipyard and see who are working there.
If we have too many auto assembly plants, for sure we will resort to employing foreign workers . Buat menyemak jer. Just look at our 4 or 5 star hotels full of foreign workers. Even homestays employ foreign workers.
U melayu orang have to switch to modern thinking as western people thinking in order to b developed nation .locals r cheaters, lazy n no $$$ in side pocket but nose hi bez of the way u people develop ur kids telling them my country n my country .western people Dats y v develop bez they value the human bring values truly.
Ibrahim is fake
i seriously don’t get what you’re trying to say here..
ya ya ya ..kepala bapak kau
What are you trying to say? Oh just plain ignorant. This is worse than laziness.
Malaysia?
666,645 units
If you minus P1 and P2 which foreign car manufacturers cannot compete
We are looking at 355,00 units only
So in other words our car market is 3 times smaller than Indonesia and 5 times smaller than Thai.
But our mouth and ego is 10 times louder than theirs ;)
The market there is more lucrative than ours, prices can be cheaper and specs better due to higher volume moved.
So they rather let Thai and Indonesian government squeezed their balls than ours
for largest car producer, but still cannot produced own car by itself. They only assembler, but to create from scratch..zero knowledge
Zero knowledge but still laughing to the banks. Some company with knowledge still bleeding it’s rakyat to death.
Looser dun fight for a long, go surrender in short time
Bro, does your nasi in nasi lemak grew from your house backyard? The telur is from your own hens? You grow the cili yourself for the sambal??
To use condom, you got a rubber tree at home? What so proud “create from scratch”?
The main question is: Do you get GOOD QUALITY car from “create from scratch”?
At least it’s improving while not the best. Unlike your T that sells same performance same transmission for decade!
Dear Same Lor,
This show that, to build a car from scratch is not like making a nasi lemak. not an easy task. even assembler country cannot DEVELOP their own without knowledge and technology..
Why they wont risking to create own car? because it will took a very long time to make them stable.. Same goes with our own car manufacturer, they made mistake but they keep improving time by time.
Meanwhile on Malaysia..creek creek..creek creek..
Meanwhile, M’sia not even worth mention in the article. Tells u how insignificant our auto industry is.
Can’t even compare to Thailand and Indonesia, wanna compete globally? Lots of jokers in this country.
Well, when Malaysia is going to overtake both of them?
Malaysia started at the top up until the 1980s period but have since been overtaken by Singapore, Thailand and now Indonesia with the other ASEAN countries following suit soon. So the question should be when Vietnam, Cambodia, Laos, Philippines, Myanmar going to overtake Malaysia? Only a matter of time at the direction we are going… After that our ministers will start comparing us to Somalia and Timbuktu instead.
And yet our leaders still saying Malaysia is HUB of this and that!
HUB full of shit.
indonesia try to beat thailand…malaysia can do what? gigit jari je la…thank you tun m. syukur malaysia masih aman…
indonesia beat thailand
malaysia beat singapore la…
Malaysian jaguh kampong je ,tapi semua bolih cari makan .
Proton is an epitome of Malaysia tragic failure in many areas, be it sports, industry, techology etc…
Malaysia is blessed with many talents and some of the best workforce in the world. However, like many of the prime objective of many national endeavours, no matter how noble it may sound initially, will inevitably fall into the rotten path of corruption, inefficiency, waste of talent and resources, and ultimately, enrich the well connected cronies and ruling elite.
Take MAS for example, a great airline with great services, with some of the greatest aircrew whom I salute from heart. Tragically, since Mahathir “Malaysia Inc.” move of corporatizing virtually all Malaysia state own entities, MAS has been a cash cow for succesive of incompetent cronies to screw it up with the expense of tax payer’s money, fatten themsleves, abandon it, and only to be screwed up by the next crony who takes over.
In the same way, Proton has long deviated from its initial objective to “Industrialise Malaysia and provide the rakyat with affordable cars”. It has became more or less like the MAS: a cash cow to be sucked dried, screwed up, and let the next crony to do the same, at the expense of tax payer’s money.
I believe there are still people in Proton who are genuinely striving to make Proton great. However, no matter how much they sacrifice, their design and effort certainly doesn’t reflect in the final product, only to be screwed up by lousy components and parts made by crony suppliers.
Since the late 90’s, Proton has been in a steady decline marred with quality issues. During the mid-noughties, Proton product has became so bad, that even its power window started to become the notorious icon to be mocked, teased and laughed about.
The 2006 introduction of Myvi nailed the coffin. Since then, Proton has never recover. Like the boy who cried wolf in the classic children’s tale, lies and bullshits can only work for limited times. Eventually, people will become immune to your bullshits and move on to other automakers, and 30 years is a long, overdue period given by the patient Rakyat for Proton to repent, which it didn’t.
Remember the Waja’s “BMW of Asia” hype back then? Such a laughing bullshit in hindsight. Remember how Gen-2 was promised to be a great product 100% done by Malaysian? Well, we know how bad the Gen-2 interior was, even James May from Top gear wanted to trade it’s Lotus-tuned chassis for some Toyota-made door trim. Then came the Savvy, Satria Neo, all becoming worst than another in quality. Soon, no matter how much marketing hype and “come back game” slogan Proton trying to protray itself to be, the effectiveness of its bullshits and lies had finally ended. The Rakyat is willing to fork out RM 100 or RM 200 more in monthly installment than to buy yet another lousy Proton.
The future of Proton is very bleak. It’s largest, local Malaysian market are abandoning its products in droves (stats don’t lie, 17% market share in 2014 tells all, not even the new Iriz could help either). It’s export is just a tiny fraction compare to the 90’s Saga-era. Though improving, Proton’s R&D is not doing good to keep abreast with the best in the world, its unrefined drive-train is an evidence how much Proton lack behind. Having too many product line-up but so little production numbers also hurt Proton logistics management. All Proton could do now is milking outdated model such as Saga or Persona with SV model, creating a short-term rise in sales figure, only to be throw back to life-support mode again. Iriz is proven a “game NO-changer”, let alone challenge the Myvi throne.
In Malaysia, political reasons always prevail over business sense. It’s crazy but it’s damn true. It is this reason Proton will never partner with another global automaker, the only way that could save it now. (remember Mitsubishi sold off all remaining stakes in Proton? after the Japanese had enough of Proton’s bullshit) And with that said, there’s nothing can be done to turn Proton around. Because in the end of the day, cronies, bini, and politics are more important than making great cars.
Wait, did I mention Satria GTi? Such a shame that it’s a one-time-hero. At least it’s a prove that Malaysia can make great car after all, once upon a time, when Hyundai and Kia also used to produce cheap and inferior cars compare to Proton.
Gen 2,You are absolutely accurate in your mini thesis on proton.
The undertaker is getting the nails to start the “CLOSING OF THE COFFIN COVER” ceremony.
Do you wish to be the last hero to hammer the last nail on Proton’s coffin?
It has been more than 25 years of shambolic struggle for Protong and Billions Of Tax funded Grants going down the cronies stomach.
It proof business model really works for Thai and Indonesian. Our lost of revenue and somebody gain. Thanks to our great policy makers for M’sia auto industry and an embarrassment to the nation.
bcoz labour cost & other cost is cheaper there compare to here. Plus …. if automaker set up the factory here, we still have lack of labours resources, end up need to use more foreign workers. So, why automaker need to pay more in here, better its for them to go there.
And Malaysia is forever falling behind. In the 90s, Malaysia fell behind Taiwan, South Korea and Singapore. In the 2000s, Malaysia is deemed to fall behind Thailand and Indonesia. Soon, we will be behind Vietnam and Philippines.