| Author | Oongart Pornkarnchananun |
| Call Number | AIT RSPR no.SM-03-38 |
| Subject(s) | Automobile industry and trade--Thailand
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-03-38 |
| Abstract | The clustering or geographical concentrations of automotive industries that gain
performance advantages through co-location has enhanced the competitive advantage
of the Thai automobile industry in ASEAN. In anticipation of the establishment of the
ASEAN Free Trade Area (AFTA), companies made Thailand the core of their
ASEAN strategies. So that, the Thai government had an important supporting in the
formation of the industrial cluster in the eastern seaboard region. By providing
investment incentives and improving infrastructure, it was able to attract assemblers
that were considering investment in Thailand or the construction of new plants there,
thus creating a virtuous circle in which clustering induced further clustering. The
development of international port facilities and the road network were particularly
decisive for both assemblers and parts manufacturers, which place considerable
importance on convenient access to distribution systems.
The purpose of this study is to analysis of production and purchasing organization of
two assemblers, which are located in two of the clusters: Toyota Motors Thailand
(TMT) and Mitsubishi Motors Sittipol Company (MSC), and to investigate and
analyze the role of Thai government in supporting automotive industry.
From the study it was found that automobile assemblers and automotive parts makers
now having the best advantage to produce the one model/item and exporting from one
country plant, instead of producing the same items (model/component) everywhere, it
seems that Thailand became the core country in the ASEAN, specialized in final
assembling of vehicles, especially pick-up truck for the whole ASEAN area and other
destination. Conversely, the weak point of Thai automotive industry slowly catch up
with international standards. Technology transfer by Japanese was limited to what
was needed to simple parts with few value added and for vehicles exclusively
dedicated to the domestic market. The orientation toward export is changing the needs
and more extensive transfer is seen in the MSC and TMT case with the recent opening
of a training school.
A real chance for automotive parts makers is to realize the economies of scale that
they .never could achieve by supplying only Japanese makers. But also European and
Americans assemblers are engaged production. To supply them on a large scale,
automotive . parts makers .h~ to integrate moduJar .production too. AJso, Japanese
makers now integrated in Westerners groups (Mazda, Isuzu) could introduce moduJar
type of organization as platforms are being designed jointly. Other Japanese car
makers (TMT, Honda, MSC) could be pushed by their suppliers to purchase modules
in the future. |
| Year | 2003 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-03-38 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Do Ba Khang |
| Examination Committee(s) | Tang, John C. S.;
Igel, Barbara |
| Scholarship Donor(s) | Royal Thai Government |
| Degree | Research report (M.Sc.) - Asian Institute of Technology, 2003 |