Driving Forward
After a crisis-ridden year Thai automakers appear to be getting back on track. How have industry giants weathered the downturn, and what direction do they envision for the Detroit of Asia? Voralak Suwanvanichkij investigates.
The Thai auto industry has experienced astronomical growth since the late 1990s, due to robust local demand and dedicated governmental efforts to attracting foreign investment, building up the nation’s capacity as a regional automotive hub. Commercial vehicles, comprised mostly of one tonne and double cab pick-up trucks, make up roughly two-thirds of the local market. While passenger cars account for the remaining third, the figure has risen sharply in recent years.
Prior to 1997, exports were a secondary concern. In the wake of the Asian financial crisis, however, domestic demand plummeted and automotive manufacturers were saddled with excess capacity, prompting a focus on exports. According to data from the Thai Automotive Industry Association, exports leaped from around 14,000 units in 1996 to over 330,000 units in 2004, helping production reach one million units in late 2005. The feat was credited as one of the main drivers of the nation’s economic recovery.
