What factors contributed to Thailands successful development as an automotive export base compared to the ASEAN nations?
First, the size of the pick-up truck market is a factor. Thailand is the second largest market for pick-up trucks outside of the US, making it possible to get economies of scale with one product. Second, there is a welcoming atmosphere for companies here. Third, manufacturers have access to Southeast Asian markets through ASEAN. AFTA (ASEAN Free Trade Area) is very important to consider during the planning stages, but companies should not anticipate wide-open free trade in ASEAN. ASEAN is a managed or balanced trade environment. Trade will increase between countries, but it may not necessarily be free trade. Auto makers will take it upon themselves to be sure that benefits accrue to all countries in the region. A manufacturer may be based in Thailand, but value added assembly or major components might be sourced from other countries. Question: What advice do you have for manufacturers in the Asian automotive industry? Auto makers in high growth markets need to place higher priority on
