Thailand slips to 12th place in global vehicle production, Malaysia takes 22nd spot in rankings

2015_Thailand_Motor_Expo_girls-46

According to data from the Organisation Internationale des Constructeurs d’Automobiles (OICA), Thailand has slipped from 9th to 12th in the world rankings of automobile manufacturers.

Even so, Thai vehicle exports still remained among the global top 10. In a report by Bangkok Post, Surapong Paisitpattanapong, vice-president of the Federation of Thai Industries’ automotive group said, “we have projected production at 2 million units and exports at 1.2 million this year.”

The OICA top 10 production rankings for the 2015 Q2 period, are as follows:

  • China – 12,095,000 units
  • United States – 6,120,593 units
  • Japan – 4,650,968 units
  • Germany – 3,084,780 units
  • South Korea – 2,321,841 units
  • India – 2,049,037 units
  • Mexico – 1,812,371 units
  • Spain – 1,457,703 units
  • Brazil – 1,276,638 units
  • Canada – 1,098,715 units

Mitsubishi_Mirage_facelift_Thailand-22

Thailand recorded 935,251 units produced, behind France, which occupied the 11th spot with 1,038,000 units. Malaysia meanwhile, produced 330,510 units to capture the 22nd spot, a 4.4% year-on-year growth during the quarter.

With Thailand’s figures down by 1.81% from the same quarter last year, Surapong said the FTI has also revised its estimate for domestic vehicle sales this year down to 760,000 units, just shy of the 800,000-unit target. Sales in the first 10 months of this year stood at 621,000 units. Surapong expects a total of 140,000 sales to come in for the remaining two months of the year.

He also anticipates slower sales in the first three months of 2016, when the new excise tax based on carbon emissions rather than engine size takes effect in Thailand. “We aim to sell 750,000 to 800,000 units locally next year,” he said.

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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

  • kapchai on Dec 15, 2015 at 6:54 pm

    Malaysia 4.4% y-o-y growth. Not bad

    Like or Dislike: Thumb up 10 Thumb down 4
    • nabill (Member) on Dec 15, 2015 at 9:34 pm

      My thought too.. Considering most of what we manufacture is for domestic market.. Its not bad… Bt godness me we have so much more potential if only policymakers had 1% intelligence n genuine benefit to msia rather than individuals…

      Like or Dislike: Thumb up 7 Thumb down 5
      • Potential for more monkey see, monkey do jobs? No thanks, I will pass for something more homegrown.

        Like or Dislike: Thumb up 3 Thumb down 5
  • deepamali on Dec 15, 2015 at 6:59 pm

    syukur, syukur…..semua ada di Mesia

    Like or Dislike: Thumb up 3 Thumb down 10
  • Aero (Member) on Dec 15, 2015 at 8:33 pm

    We can never match Thailand in terms of units produced, we can only match them in terms of value. In other words, quality over quantity. Malaysia should try and produce more luxury cars as opposed to basic Japanese cars. The profit margins are higher among luxury cars, because there is less competition. Our luxury car market is very strong and still growing despite the economic hurdles. Mercedes-Benz Malaysia’s sales grew exponentially this year thanks to higher localisation and government rebates for some Hybrid models. Malaysia’s GDP (nominal) per capita is double Thailand’s, and triple Indonesia’s. Malaysians buy more Mercedes-Benzes than Singaporeans.

    Mercedes-Benz is our biggest investor among the big luxury car brands. They’ve been producing CKD cars here for decades and decades. Early models were made in OASB’s Johor Bahru plant, but all CKD Benzes today are made at DRB-HICOM’s Pekan plant. BMW and Volvo have invested a lot here too, but Audi and Jaguar have never really bothered to commission CKD operations here… and their abysmal sales is evidence enough. Alfa Romeo may have had some CKD models here, but I’m not so sure. Land Rover currently makes only the archaic Defender here, not the newer models. Lexus and Infiniti don’t have CKD plants here either. Amazingly, Australian Holden and Chevrolet of America used to make cars in Malaysia at one point in the past, but don’t anymore. Cadillac is non existent here.

    It is up to our government and the various local partners to convince the luxury car companies to invest in our automotive industry. Alternative energy vehicles is another option, but I’m still a bit sceptical. Our industry (and Thailand’s) will eventually lose out to Indonesia, Vietnam and Myanmar in the long run. Labour costs, ageing labour, low car ownership, rising land costs and whatnot will eventually cause many Japanese car companies to switch over to the less developed ASEAN countries.

    Like or Dislike: Thumb up 32 Thumb down 6
    • Add-A-Comment on Dec 16, 2015 at 9:36 am

      Good points. 100% agreed what you have said.

      – I Have Just Added A Comment –

      Like or Dislike: Thumb up 1 Thumb down 1
    • Nonsense Logic on Dec 16, 2015 at 10:00 am

      Because Thailand don’t have UMNO.

      Like or Dislike: Thumb up 17 Thumb down 16
    • alldisc on Dec 16, 2015 at 10:43 pm

      Actually the cost of doing a knocked down car and assemble is so much higher when there is no volume of sales.

      Remember what happened to Nissan Cefiro, the A32? The last Sentra N16 lasted well over 6 years and had went thru 2 facelifts instead of one.

      The reason for local assembly before 2010 was because of the savings on import tax. It was ranging from 120-300% for some time since 1998.

      In order to do CKD, car distributors have to make a careful calculation based on estimating how many units they can sell over the life cycle of a model. This is because the jigs alone can cost millions of ringgit and ROI may take some time.

      The only reason CKD continue to survive is because the factory plant is already there. Machineries, logistics and human resources. Cants just stop like that even though it is cheaper to import from neighbor Thai and Indonesia.

      I must say no one will believe if I state KIA Spectra cost below rm10k upon import from Korea, landed price. But even with 300% import tax… Plus sales tax and excise duty, naza can happily sold the car between 45-52k.
      The victim will be proton because waja and wira and not very well equipped and secondly perodua – who will buy a kelisa at 40k when they can buy a spectra (at that time unknown reliability).

      Naza was forced to sell at 80k+ and thus making a huge fortune from it.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Doesn’t matter. We still maintain world no1 ranking in corruption index. For this we only compete among ourselves, no one come close.

    Like or Dislike: Thumb up 20 Thumb down 9
    • Which a$$ did you dig that corruption index from? Your dear leader’s kah?

      Like or Dislike: Thumb up 4 Thumb down 7
    • you stupid! malaysia top 10 cleanest asian countries on Dec 16, 2015 at 4:06 pm

      don’t think all readers as stupid as you to believe nonsense without evidence! below link is the list of corrupted countries and guess what idiot ? malaysia NOT among the top 10 corrupted countries, and guess what more ? malaysia among the top 50 cleanest countries out of 175 countries, and guess what stupid ? malaysia among the top 10 cleanest asian pasific countries !
      here is the DECENT source from Transparency International : http://www.transparency.org/cpi2014/results .. and btw transparency international has nothing to do with umno bcoz i know some stupids idiots uneducated like you will “say its coming from umno or gov ” … and not bcoz i say that it means i support or against gov, i am not even malaysian btw i have only red card , i am just against those who speak rubbish without evidence and those who spread rumors
      An advice : before you open your mouth DO read , and when you read, do read from the proper source, or else whatever nonsense coming from your ugly mouth will show you as a donkey or even less .
      p.s: whoever going to reply this comment please do mention figures, numbers, statistics from proper source as i mentioned to you evidence from international source.

      Like or Dislike: Thumb up 11 Thumb down 3
      • Malaysian netizens now only wanna see numbers that support their assumptions, if it goes against what they think, then its Gov hidden agenda or corruption.

        Furthermore, if you not Malaysian but wanna support BN, they will tell you to balik kampung or Indon or Bangla or Nepal. However if you foreigner but bash BN, you are considered as Hero, Saviour of our nation, god bless you, they support you 110%.

        That is Malaysia now.

        Like or Dislike: Thumb up 2 Thumb down 0
        • agree! on Dec 17, 2015 at 5:12 pm

          Actually what are you saying is true, most of the ppl just can’t accept other opinion even it comes from international and trust source, they rather read from blogs and nonsense websites and they DO believe it!!
          I pray may God open their heart and mind to at least not spread rumors without evidence .

          Like or Dislike: Thumb up 0 Thumb down 0
  • Marc Jacobs on Dec 15, 2015 at 11:11 pm

    Malaysia should be higher if not for poros-ton

    Like or Dislike: Thumb up 5 Thumb down 1
  • Thai Land means Lego Land. When the labor cost is not cheap anymore these car companies would just pull the plug and migrate to other countries with cheap labor. Malaysian did the research, design and produce own car. Producing car is already in malaysian dna :)

    Like or Dislike: Thumb up 10 Thumb down 7
    • Marc Jacobs on Dec 16, 2015 at 10:49 am

      Hhahahhahha…. Dna

      Like or Dislike: Thumb up 0 Thumb down 0
    • 4G63T DSM on Dec 16, 2015 at 11:15 am

      In the grand scheme of things, number are numbers.

      Malaysia only produces 1/2 (assuming our cars produced for export is negligible) of its TIV, meaning 1/2 of the cars for local consumption are still imported.

      So much for being the Detroit of Asia, and having DNA of a country that produces cars.

      On the flipside, in an overly simplistic form, Thailand produces 1+ million cars, and 700k for domestic, which means it exports more cars than malaysia even produces in total.

      Think about the jobs that creates and the knowledge and technology transfer that it affords the people of Thailand.

      Adds perspective to the katak under the coconut shell.

      Like or Dislike: Thumb up 3 Thumb down 4
  • Same L0rrr on Dec 16, 2015 at 9:56 am

    Proton fans should proud because Malaysia have Proton 100% malaysian..
    Thailand only plug & play in automotive industry..

    Like or Dislike: Thumb up 9 Thumb down 6
  • Ollie on Dec 16, 2015 at 3:26 pm

    More accurate to focus on passenger cars only:

    China 10,327,754
    Japan 3,910,535
    Germany 2,919,548
    USA 2,166,636
    South Korea 2,107,395
    India 1,681,599
    Spain 1,185,712
    Brazil 1,033,838
    Mexico 1,029,244
    France 874,000
    UK 793,642
    Czech Rep. 673,241
    Russia 654,137
    Slovakia 540,000
    Iran 496,982
    Canada 467,009
    Indonesia 424,323
    Thailand 395,854
    Turkey 391,977
    Italy 343,430
    Malaysia 305,230

    Lets get this clear. I’ll try to make it simple:

    Malaysia is the hub for almost all high-value manufactured products in the region.
    I.e. semi-conductors, spare parts, refined edible oils
    And support services; i.e. we deliver higher-value business support services than customer service lines; i.e. finance support, fund administration, compliance services.

    Now, the question is why are we so low on the scale for cars?
    Wake up and smell the hibiscus’, its PROTON.

    Due to our noncompetitive tax structure and regulatory regime, we are losing out.

    On assembly vs manufacturing:
    Proton does not manufacture sh*t. They import their transmission from China (Punch), steering, brakes, suspension all store-bought. Engine designed and built locally. One measly engine for 10 years, Campro 1.6 Turbo. How many design and engineering jobs has this one stupid engine created? To top it all off, the best-selling Protons now are pure rebadge: Inspira, Accordana.

    Go read FCA’s slides on automotive consolidation, Confessions of a Capital Junkie; re: slide 17, the basic premise is the only added-value to be found in manufacturing today is designing the exterior and interior. Every single part of a car, just like your cellphone, is just store-bought parts. If we had the capital, you and I could start a car company tomorrow.
    Failure to understand this basic premise is what is causing Proton to continue leaking billions of RM of tax payer money and causing billions of economic losses to Malaysians through higher cost of cars. In general, 30-40% of disposable income goes to automobile lease and maintenance in Malaysia, vs below 20% in developed countries with free auto markets.

    Vehicle assembly creates thousands of jobs. When we don’t have competitive advantage in manufacturing cars, there’s no point to devote billions to it. Advantages include a ready supply of iron ore (steel), and sufficient local market scale. We have neither. We are rich due to Petronas oil and gas reserves, but we should be saving these for future generations, not depleting finite resources. RM974 billion in revenue from Petronas since 1981, where has it all gone? There’s a bigger picture than just Proton, but Proton is part of that picture.

    We have lost so much due to Proton. Our lives included, as the inherent lack of safety in Proton is killing Proton drivers as well as other road users who are endangered when Proton cars lose control.

    Also, the thousands of motorcyclists and their wife and kids who lose their lives in accidents because they can’t afford a car in the Malaysian market.

    Not only economic hardship caused, but there’s blood on your hands, Proton supporters.

    Like or Dislike: Thumb up 2 Thumb down 10
    • ciakap on Dec 16, 2015 at 4:34 pm

      Wake up dude.. current p1 already achieved 5 star asean NCAP & Australasia NCAP.. if you want to talk p1 car that produced before 2012, then yes I agree.

      Like or Dislike: Thumb up 12 Thumb down 1
 

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