in Thailand Automotive Industry in Thailand

Thailand: Automotive Hub of ASEAN  2005 production ~ million units (World’s 14 th largest)  Export ~ 440,000 units  Largest in Southeast Asia  Capacity of 2.0 million units in 2010  World’s largest production of one-ton pickup trucks  820,000 units in 2005

2010 Target—World’s Top 10

Auto assembly for local and export markets under AFTA and other FTA arrangements Auto assembly for local and export markets under AFTA and other FTA arrangements Auto part manufacturing to serve domestic and export markets Auto part manufacturing to serve domestic and export markets Potential small car hub -- low fuel consumption Potential small car hub -- low fuel consumption NGV target: 120,000 NGVs by 2008 NGV target: 120,000 NGVs by 2008 Investment Opportunities in Automotive Industries

Detroit of Asia: Strengths  Thailand is the biggest automobile producer among ASEAN nations.  Thailand is the world’s largest producer and market for one-ton pick up trucks after the U.S.  Thailand is currently the export base of Mitsubishi, Ford, Mazda, Toyota, Isuzu and GM  Exports of CKD parts and components have increased

Strengths: Automotive Hub of ASEAN 14 assemblers from Japan, US and Europe 14 assemblers from Japan, US and Europe Over 700 first-tier suppliers Over 700 first-tier suppliers 1,100 second and third-tier suppliers 1,100 second and third-tier suppliers 2005 motorcycle production  3 million units 2005 motorcycle production  3 million units

Production volumes of the Thai Automotive Industry Type of Vehicle Growth 05/04 PassengerPassengerPassengerPassenger Passenger Cars 138,579112,04132,00872,71697,129156,056169,321251,684304,349277, Off-road Passenger Vehicles (OPV) 2,5441,6041,9505,8225,9604,62120,5998,965 Pickup Passenger Vehicles (PPV) , , ,672 5,80342,78962, CommercialCommercialCommercialCommercial Pickup Trucks 1 369,913223,243121,963244,223465,060557,622762, Vans, Micro-Buses 1, Buses Medium & Heavy Trucks 2 46,68822,4881,5724,3919,1976,71310,01118,74523,20823, Total (excluding Motorcycles) 559,428360,303158,130327,233411,721459,418584,951750,512928,0811,125, Motorcycles 4 1,437,7941,081,044600,497846,4261,125,7231,209,9951,977,1442,424,6763,028,0703,494, Total1,997,2221,441,347758,6271,173,6591,537,4441,669,4132,562,0953,175,1883,956,1514,619, Source: The Federation of Thai Industry Remark: 1 = Pickup < 1 ton, Pickup 1 ton and Double Cab 2 = < 5 tons, 5-10 tons, 10 tons up 3 = PPV began in = CBU + CKD Unit: Cars

Sales Volumes of the Thai Automotive Industry Type of Vehicle Growth 05/04 PassengerPassengerPassengerPassenger Passenger Cars 172,730132,06046,30066,85883,106104,502126,353179,005221,077193, Off-road Passenger Vehicles (OPV) 004,2757,1997,6496,37021,62016,492 Pickup Passenger Vehicles (PPV) , , , ,592 10,43343, CommercialCommercialCommercialCommercial Pickup Trucks 1 327,663188,32484,104132,922359,358427, Commercial Cars Vans, Micro-Buses 12,6338,3532,7924,1676,4926,5828,3358,4899,58512, Buses Medium & Heavy Trucks 2 76,10034,4196,5947,1849,4599,05310,12418,59825,30626, Total (excluding Motorcycles) 589,126363,156144,065218,330262,189297,832407,698533,176626,024703, Motorcycles 4 1,236,940907,584526,735604,010788,854900,9251,332,7441,766,8602,039,3942,112, Total1,826,0661,270,740670,800822,3401,051,0431,198,7571,740,4422,300,0362,665,4182,815, Source: The Federation of Thai Industry Remark: 1 = Pickup < 1 ton, Pickup 1 ton and Double Cab 2 = < 5 tons, 5-10 tons, 10 tons up 3 = PPV began in = CBU + CKD Unit: Cars

Domestic Wholesales AnnualJan-Oct Source: Thailand Automotive Institute

Production AnnualJan-Oct Source: Thailand Automotive Institute

Exports AnnualJan-Oct Source: Thailand Automotive Institute

Parts Manufactured in Thailand Engines Engines Diesels, Motorcycles Engine Components Engine Components Starters, Alternators, Pumps, Filters, Hoses, Gears, Flywheels Body Parts Body Parts Chassis, Bumpers, Fenders, Hoods, Door Panels Brake Systems Brake Systems Master Cylinders, Drums, Discs, Pads, Linings, Steering Systems Steering Systems Steering Wheels, Gears, Columns, Pumps, Linkages Suspensions Suspensions Shocks, Coils, Ball Joints Transmissions Transmissions Gears, Casings, Rear Axles, Drive Shafts, Propellor Shafts Electrical/Electronics Electrical/Electronics Alternators, Starters, Speedometers, Lamps, Motors, Flasher Relays Interiors/Exteriors Interiors/Exteriors Seats, Mats, Weather Strips, Console Boxes Others Others Windshields, Seat Belts, Radiators, Wheels, Compressors

Opportunities: Sophisticated electronic systems including mould and die technology Design, R&D and testing Precision engineering Note: BOI gives component parts manufacturers up to 8 years corporate income tax holiday & exemptions of machinery import duty for investments Parts Not Sufficiently Produced in Thailand Parts Not Sufficiently Produced in Thailand Passenger Car Engines Passenger Car Engines Fuel Injection Pumps* Fuel Injection Pumps* Transmissions* Transmissions* Differential Gears Differential Gears Injection Nozzles* Injection Nozzles* Electronic Systems Electronic Systems Electronic Control Units Electronic Control Units Turbo Chargers* Turbo Chargers* Substrates for Catalytic converters Substrates for Catalytic converters Anti-Lock Brake Systems Anti-Lock Brake Systems Jigs and fixtures Jigs and fixtures