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Thailand’s Automotive Industry: The History Behind the "Detroit of Asia"

Thailand’s Automotive Industry: The History Behind the "Detroit of Asia"
Thai auto industry can expect bounce back in 2021 © https://thaiembdc.org/

Thailand's automotive industry is often referred to as the "Detroit of Asia" due to its impressive growth and status as a major player in the global automobile market. The country's automotive industry began in the 1960s when the Thai government implemented policies to promote industrialization and attract foreign investment. Today, Thailand's automotive industry is a critical part of its economy, contributing significantly to the country's GDP and providing employment opportunities for thousands of people.

Early History

Thailand's automotive industry traces its roots to the 1960s when the country's government began implementing policies to promote industrialization. One of the key policies was the establishment of the Board of Investment (BOI), which was tasked with attracting foreign investment into the country. The BOI offered various incentives to foreign companies to set up manufacturing operations in Thailand, including tax holidays, import duty exemptions, and other benefits.

In 1961, the first automobile assembly plant in Thailand was established by a Japanese company, Hino Motors. The plant produced trucks, and soon other Japanese automakers followed suit. By the 1970s, Thailand had become a major hub for automobile assembly, with a significant portion of the country's production being exported to other countries in the region.

Growth and Development

The 1980s saw a significant expansion of Thailand's automotive industry, with the establishment of several new manufacturing plants and the introduction of new models. The government continued to promote industrialization and offered additional incentives to foreign investors. As a result, Thailand became one of the top destinations for automotive manufacturing in Asia.

In the 1990s, Thailand's automotive industry continued to grow, with the introduction of more advanced manufacturing technologies and the establishment of new production plants. The country also began to develop its own automotive design capabilities, with several Thai companies collaborating with foreign automakers to develop new models.

Recent Developments

Today, Thailand's automotive industry is a critical part of the country's economy, with the sector contributing significantly to the country's GDP and providing employment opportunities for thousands of people. The country is now the largest producer of automobiles in Southeast Asia and is one of the top ten automobile producers in the world.

Thailand's automotive industry has benefited from its strategic location in the region, as well as the government's policies to promote industrialization and attract foreign investment. The country's automotive industry has also been able to leverage the expertise of foreign automakers to develop its own capabilities in manufacturing and design.

Conclusion

Thailand's automotive industry has come a long way since the establishment of the first automobile assembly plant in the 1960s. Today, the industry is a critical part of the country's economy and a major player in the global automobile market. Thailand's success in the automotive industry can be attributed to the government's policies to promote industrialization and attract foreign investment, as well as the industry's ability to leverage the expertise of foreign automakers to develop its own capabilities in manufacturing and design.

References:

  1. "Thailand's Automotive Industry: A Rising Star in Southeast Asia." ASEAN Briefing, 21 July 2021, https://www.aseanbriefing.com/news/thailands-automotive-industry-rising-star-southeast-asia/.
  2. "Thailand Automotive Industry: The 'Detroit of Asia'." InvestAsian, 21 July 2021, https://www.investasian.com/2021/07/21/thailand-automotive-industry-the-detroit-of-asia/.
  3. "Thailand's Automotive Industry." Thailand Board of Investment, https://www.boi.go.th/upload/content/THAILAND_AUTOMOTIVE_INDUSTRY_1577450423.pdf.
Akhyari Hananto

I began my career in the banking industry in 1997, and stayed approx 6 years in it. This industry boost his knowledge about the economic condition in Indonesia, both macro and micro, and how to More understand it. My banking career continued in Yogyakarta when I joined in a program funded by the Asian Development Bank (ADB),as the coordinator for a program aimed to help improve the quality of learning and teaching process in private universities in Yogyakarta. When the earthquake stroke Yogyakarta, I chose to join an international NGO working in the area of ?disaster response and management, which allows me to help rebuild the city, as well as other disaster-stricken area in Indonesia. I went on to become the coordinator for emergency response in the Asia Pacific region. Then I was assigned for 1 year in Cambodia, as a country coordinator mostly to deliver developmental programs (water and sanitation, education, livelihood). In 2009, he continued his career as a protocol and HR officer at the U.S. Consulate General in Surabaya, and two years later I joined the Political and Economic Section until now, where i have to deal with extensive range of people and government officials, as well as private and government institution troughout eastern Indonesia. I am the founder and Editor-in-Chief in Good News From Indonesia (GNFI), a growing and influential social media movement, and was selected as one of The Most Influential Netizen 2011 by The Marketeers magazine. I also wrote a book on "Fundamentals of Disaster Management in 2007"?, "Good News From Indonesia : Beragam Prestasi Anak Bangsa di dunia"? which was luanched in August 2013, and "Indonesia Bersyukur"? which is launched in Sept 2013. In 2014, 3 books were released in which i was one of the writer; "Indonesia Pelangi Dunia"?, "Indonesia The Untold Stories"? and "Growing! Meretas Jalan Kejayaan" I give lectures to students in lectures nationwide, sharing on full range of issues, from economy, to diplomacy Less
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