Automakers urging Thailand to join TPP – report

Thai traffic

The Trans-Pacific Partnership (TPP) currently consists of 12 member countries that signed the agreement back in early October. A 13th member could soon join the pact as automakers are urging Thailand to be a part of the TPP, to ensure the country’s automotive market continues to prosper in the long run.

In a report by Bangkok Post, it was revealed that Thailand boasts the strongest automotive industry in ASEAN, producing 49% of the 3.9 million vehicles that came out of the region each year. It also ranks second (26%) to Indonesia (35%) when it comes to ASEAN car sales, which amounted to 3.2 million units a year.

Speaking at the recent 32nd Thailand International Motor Expo, CEO of Honda Automobile (Thailand) Pitak Pruittisarikorn said any free trade agreements, bilateral or regional, would be advantageous to Thailand’s automotive industry – which exports 70% of its overall production.

“At present, Thailand has yet to lose much competitiveness against four ASEAN countries (Brunei, Malaysia, Singapore and Vietnam) that joined the TPP. The pact will deliver a huge impact to Thailand once they develop their own automotive industries to support TPP members or Indonesia decides to join the trade pact,” Pitak said.

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Thailand’s automotive industry has a total production capacity of 2.9 million vehicles a year, of which only 70% is being utilised. Pitak identifies this as a weakness of the industry, and reckons that an increase in export destinations through the TPP will help it achieve full production capacity.

However, he mentioned, “we don’t expect any projects under the second phase of the eco-car scheme to churn out in the foreseeable future, as the current production is bountiful.” Thailand’s vehicle output is estimated to hit 1.95 million units this year, ranking it 12th among the world’s car-making countries, unchanged from the year before.

Thailand’s automotive industry also stands to benefit when the ASEAN Economic Community (AEC) officially comes into effect at the end of the year, of which it is a member along with Malaysia. Its exports involving completely built-up vehicles (CBUs), completely knocked-down kits (CKDs) and auto parts throughout the region are expected to increase with the absence of tariffs.

This is according to Ong-arj Pongkijworasin, chairman of the automotive industry club under the Federation of Thai Industries Exports, who also added that the implementation of the AEC is unlikely to boost competitiveness in the regional automotive market, so long as Asean members are contending with one another.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Aero (Member) on Dec 09, 2015 at 1:44 pm

    The future of our entire automotive industry depends entirely on whether or not;

    1. we actually sign the TPPA
    2. and if we do, if Thailand signs it too.
    3. and if they do, then we’re doomed.
    4. and if they don’t, we still have a chance yet.

    5. also, Indonesia plans to sign the TPPA, but their auto industry is still vulnerable. If both Thailand and Indonesia sign, then Thailand would easily dominate the entire ASEAN auto industry. Only a handful of Malaysian and Indonesian vendors will survive and prosper. Most will not.

    In effect, our cars will become cheaper, but we will only be able to afford Vios and City type cars, because we will lose a huge chunk of technical and high skill jobs. We will hit a glass ceiling. Thailand too will hit a glass ceiling, they will forever be a slave to Japanese car companies. The entire ASEAN will be dominated by foreign corporations, we will have no power.

    If you care about your country, your children, or the future generation, say no to TPPA. Don’t be tempted by its false promises. Malaysia is already a member of the WTO and AFTA, we don’t need TPPA to enhance global trade. TPPA is the silent killer.

    Like or Dislike: Thumb up 32 Thumb down 6
    • Macais says dun about about future, they want their RM20k Altis NOW.

      Like or Dislike: Thumb up 7 Thumb down 1
    • Ollie on Dec 10, 2015 at 12:20 pm

      The only thing worse than having no knowledge is having half-baked knowledge.

      As the well-known Proton lover, you’re talking about a ‘huge chunk of technical and high-skill jobs’ and being a slave to Japanese car cos. What in the H are talking about?

      Usually I don’t care about stupidity, just leave them be, I’d say. But when you spread your stupidity to others, I have to say something.

      Your beloved Proton just imports Punch transmissions from China. Brake systems, steering systems are all bought for assembly. The ‘high-skill’ job that Proton does is ‘transform’ the Thundercats logo to theirs and rebadge Accord and Lancer.

      Its stupidity at its sheer worst with you. Thailand is 12th largest car manufacturer. For ASEAN market, you think no carmaker would place a design centre once the market is open and big enough? That’s the TPPA aim. (There are pros and cons to TPPA, but more benefits than costs as free market leads to better efficiency. Costs are mainly to rent-seeking protected industry, best example: Proton)

      Grr so frustrating talking to stupid people.

      Like or Dislike: Thumb up 4 Thumb down 4
      • Aero (Member) on Dec 10, 2015 at 4:30 pm

        Why should I respect your opinion when you have no respect for mine ? A real gentleman would refrain from degrading his opponent through hurtful language, profanity and violence.

        Don’t expect me to reply your comments or debate you in the future. Learn how to respect others first, if you want to be respected as well.

        Like or Dislike: Thumb up 4 Thumb down 4
  • Rusmah on Dec 09, 2015 at 4:10 pm

    No matter TPP, AFTA,etc…
    My husband control the AKTA.
    You will still buy my partnersnip brand with no ESC, Tax will compensate my spending.
    Oh my brand new jet, so lovely..

    Bring me around the world,
    Bring “bag” around the world.

    We will continue our slaving plan.
    Work more, Donate me more.

    Like or Dislike: Thumb up 13 Thumb down 7
 

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