Overseas automobile Market Research Report – Thailand
The following is the Overseas automobile Market Research Report – Thailand recommended by recordtrend.com. And this article belongs to the classification: Automobile industry.
01. Population and economic overview of Thailand
Located in Southeast Asia, Thailand is an important trading partner of China. Thailand covers an area of 513000 square kilometers (Sichuan Province covers 481000 square kilometers), second only to Indonesia and Myanmar in Southeast Asia. By the end of 2020, the total population of Thailand was about 65.228 million (66.4494 million in Hunan and 64.5676 million in Zhejiang in 2021). Thailand’s GDP reached a record high of 543.5 billion US dollars, equivalent to about 8000 US dollars per capita GDP. In 2021, China and ASEAN officially announced the establishment of a comprehensive strategic partnership, becoming the largest trading partner of ASEAN countries.
At the same time, Thailand is also a newly industrialized country, and industry and service industry are the two main industries of the country’s GDP. Thailand has superior automobile production conditions and complete industrial chain. Honda, Toyota, Nissan and other well-known Japanese companies are investors in Thailand’s main automobile industry, and are currently the third largest automobile exporter in Asia after Japan and South Korea. Thailand is striving to become an automobile manufacturing center in the ASEAN market.
At present, Thailand is in the stage of smart industry transformation. Looking back on the economic development process of Thailand, it has roughly experienced three modes: Thailand 1.0, which emphasizes agricultural development, Thailand 2.0, which focuses on the development of light industry, and Thailand 3.0, which emphasizes the development of heavy industry to continue to promote economic growth. As a traditional agricultural country, after the stage of industrial development, Thailand’s economy has changed from inward to outward. At present, Thailand has entered the 4.0 development stage, which is to improve the added value of products through innovation and application of new technologies, so as to promote the transformation and upgrading of Thai economy and enhance competitiveness.
02. Automobile industry and automobile market
Thailand’s automobile industry has two major characteristics: the first is the largest automobile manufacturing country in ASEAN, and the second is export-oriented. Thailand ranks 10th among the world’s top ten auto producers. Within ASEAN, Thailand has the highest annual output of automobiles. At present, the sales volume of the local market is about 1million vehicles / year, and the automobile output is about 2million vehicles / year. It is an export-oriented automobile industry. Thailand drives on the left, so the driving position is on the right, which is often referred to as a right-hand drive vehicle. Therefore, a large part of automobile exports are exported to other ASEAN countries and Australia that also use right-hand drive vehicles.
Thailand has 18.17 million cars and about 261 cars per thousand people (China has about 214 cars per thousand people). On the other hand, Thailand’s per capita GDP is about 8000 US dollars (China’s is about 10000 US dollars). Judging from the comprehensive ownership and per capita GDP level, Thailand’s automobile consumption market has developed to the middle and late stage of the popularization period, the growth rate of industry sales in the future is low, and Thailand’s local automobile market is close to the stock market.
Among the total production capacity of vehicle manufacturers in Thailand, the total production capacity of Japanese car companies accounts for more than 80%, and Toyota, Ford Mazda and Mitsubishi account for the top three according to the share of production capacity. It is mainly because in the early stage of the development of Thailand’s automobile industry, high tariffs were charged on automobile imports, which prompted Japanese manufacturers with the same right-hand drive to set up factories and produce locally. Because Japanese manufacturers choose the hybrid technology route, and the price of hybrid cars from Japanese manufacturers is higher than that of fuel cars, it is not smooth for Japanese manufacturers to promote hybrid cars in Thailand.
From the perspective of the trend of automobile production and sales, Thailand’s policy of stimulating automobile consumption from 2012 to 2013 brought about the peak of sales, and this batch of vehicles will also be eliminated and updated, which will increase the recent automobile consumption demand in the Thai market, which also created opportunities for the development of the new energy vehicle market. In the light vehicle market in Thailand, pickup trucks and cars are the two categories with the highest sales proportion. Among them, the sales of pickup trucks and cars were 430000 and 340000 respectively, accounting for 42% and 33% respectively. In the car category, the sales volume of small cars accounts for nearly 80%. The sales of SUV and MPV are relatively small, accounting for 13% and 4% respectively.
Thailand also plans to comprehensively promote electric vehicles. The new energy vehicle market in Thailand is in its infancy and is still dominated by plug-in hybrid vehicles. Of the approximately 40000 new energy vehicles sold in 2021, only about 2000 are pure electric vehicles, but it is expected that the sales of pure electric vehicles will exceed 10000 this year. Therefore, the policy is also leaning towards electric vehicles. In 2021, the national electric vehicle Policy Committee (nevpc) of Thailand formulated a comprehensive electric vehicle promotion plan, aiming to increase the proportion of EV in passenger vehicle production to 30% and the proportion of EV in passenger vehicle sales to 50% by 2030.
In 2021, China’s exports of new energy vehicles to Thailand showed explosive growth. In addition to investing in the construction of factories in Thailand, China is also exporting cars directly to Thailand, and new energy vehicles account for the vast majority, which reflects the strong competitiveness of China’s new energy vehicle products and the strong demand of Thai consumers for new energy vehicles. In 2021, the number of Chinese cars exported to Thailand reached 48752, and the number of new energy vehicles reached 40662. From January to may 2022, the number of Chinese cars exported to Thailand reached 29229, and the number of new energy vehicles reached 23815. In less than two years, China’s automobile exports have achieved a breakthrough high growth.
As early as 2014, the Thai plant of SAIC Chia Tai, a joint venture between SAIC and Chia Tai, was completed and put into operation, with a design annual capacity of 100000 units. Great Wall Motors’ Thai Rayong plant was also officially put into operation in 2021, with an initial annual capacity of 80000 vehicles. The media also disclosed BYD’s plan to establish a joint venture plant with Thai enterprises. The entry of Chinese manufacturers has broken through the dominant highly concentrated market in Japan. In 2021, SAIC mg and great wall were successfully listed in the top ten brands, and the products of SAIC and great wall are mainly new energy vehicles.
SAIC Zhengda has launched SUV, sedan, pickup truck and other products in Thailand, and its main sales model is SUV. In terms of terminal construction, after years of construction, SAIC Zhengda has almost covered the whole territory of Thailand, and SAIC Zhengda is also actively building charging facilities. After the GWM brand was launched, Great Wall Motors planned the product launch of nine models, and introduced the Euler cat Bev model in the form of import. In terms of terminal construction, Great Wall Motors initially launched a channel network centered on Bangkok and introduced the innovative business format of supermarket experience stores.
03. Opportunities and risks of Thailand’s automobile market
At present, the Thai government is also deliberately introducing new competitors to the automotive market. A series of preferential tax policies have been introduced to attract investment. Although Thailand has introduced relevant supporting policies for electric vehicles, it should also be recognized that the infrastructure of electric pure electric vehicles in Thailand is still imperfect, and there is a shortage of localized supply of power batteries. At present, Thai consumers are also in the stage of understanding electric vehicles, and the popularity of electric vehicles in Thailand is not achieved overnight.
At the same time, tax barriers remain a key obstacle to the growth of BEV demand in Thailand. Take electric vehicles imported from China as an example. Although it benefits from zero import tariffs under the free trade agreement, the price of imported electric vehicles is still high because other taxes account for more than 20% of the final retail price. If pure electric vehicles are imported from other countries, the tax will be even higher. The China ASEAN Free Trade Agreement enables Thailand to import cars from China with zero tariffs, while cars imported from Europe are subject to 80% tariffs, while Japanese cars are subject to 20% tariffs under the Japan Thailand Economic Cooperation Agreement.
To this end, in 2022, Thailand introduced a package of incentive plans aimed at promoting the development of the local electric vehicle industry, so that by 2030, the penetration rate of electric vehicles in Thailand will reach 50%, and become an important production base of clean energy vehicles in Southeast Asia. Chinese auto enterprises should seize the opportunity of the new energy vehicle market in Thailand, break the long-term monopoly of Japanese manufacturers on the Thai auto market, and gradually penetrate into other ASEAN countries based on Thailand, so as to achieve a new breakthrough in China’s auto going global through new energy vehicles. More reading: China Automobile Circulation Association: China automobile preservation rate report in April 2022 China Automobile Industry Association: a brief analysis of the export situation of automobile manufacturers in December 2021 Ministry of Public Security: by the end of June 2022, the national motor vehicle ownership has reached 406million passenger cars Association: Commercial Vehicle Market Forecast Research Report in July 2021 China Automobile Industry Association: the top ten car brand sales ranking in March 2022 China Automobile Industry Association: May 2021 Automobile Industry Association China Automobile Circulation Association: April 2020 China imported automobile market monthly report China Automobile Circulation Association: in the first quarter of 2020, luxury brands added 57 authorized 4S stores and 41 off-line 4S stores. China Automobile Circulation Association: in March 2020, the domestic narrow passenger vehicle market sales reached 1.045 million, a year-on-year decrease of 40.4% in January 2020, capital auto market analysis Ministry of Public Security: by the end of March 2022, the national motor vehicle ownership reached 402million China Automobile Circulation Association: financial report analysis of Hong Kong listed dealer group in 2021 Ministry of Commerce: from January to may 2020, China exported 373000 vehicles. British lancet magazine: research shows that one third of young men in China will die of tobacco. China Automobile Circulation Association: the inventory warning index of Chinese automobile dealers in January 2022 was 58.3%
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