
1. Business Environment :
In 2011, Thai economic is expected to grow in the range of 3.5-4.5%. The major supporting factors are improved tourism sector and increase in agricultural products price. However, there remain risks and uncertainties which comprise of volatility of world economy, political stabilities, economic effects from deceleration of Japan economy, higher interest rate, and higher oil price.
Automotive industry, the leading industry in Thailand share about 12% of GDP. In 2011, although several negative factors made the shrinkage of automotive industry during the second quarter of the year, but the vehicle production began to pick up in the following quarter. Total production for 2011 is forecasted to 1.8 million units (1.7 million units in 2010). Smaller vehicle with improved fuel efficiency, environment friendly with next generation of power source are aimed to develop for new generation vehicle.
2. Performances :
In Year 2010 GPPD sales gained rapid growth around 20% from the initial recovery year 2009 at the volume THB 23.11 billion, which comprised of Import volume THB 8.9 billion and Export 14.2 billion. The domestic positive factors are Government policy in promoting automotive industry and increase in Agriculture product prices. Toyota achieved production volume 635,610 units in Y2010 rise by 15.8%. The natural disasters and Japan Tsunami crisis in Mar'2011 impacted to many car makers in Thailand. Production was slow down in Apr-May'11, the concerned party try the best to secure the production capacity at 695,800 units in year 2011.
3. Types of Products & Services :
Global Production Parts Department is emerging of automotive parts import & export's hub in region of Asia-Oceania , ASEAN , LATIN America, Africa and others with virtual business mainly supply to TOYOTA car manufacturer. Our major products and services are
- Worldwide supply automotive parts and their components for OEM and REM market.
- Logistics management by consolidating the automobile parts and their components from various suppliers and distributed to the various customers globally on daily and weekly basis. By managing worldwide supply chain and real time system ; providing prompt data in ordering , delivery and status showing to customer.
4. Overall Future Trends / Outlook :
In year 2011 Thailand ranks as the 11th best destination in the world for foreign direct investment (FDI), rising in the latest survey by the United Nations Conference on Trade and Devel- opment (UNCTAD). Thailand is well positioned to make continued economic growth. The government continues to make every effort to strengthen investor confidence, to resolve all outstanding issues related to environmental impact, and to improve the transportation and logistics capacity of the nation. Most of the investment applications received at the BOI during Year 2010 reached to 320 projects, are in the automotive sector for THB67 billion. As a result, auto makers continue to expand their production facilities. Last year, the eco car began to roll off the production line and Thailand's auto sector will continue to be benefited from the increase in production of more fuel efficient cars, particularly as the global oil price increase.
As the trend for eco car in global market, we expecting the opportunity to increase exporting auto part to Toyota manufacturing facility world wide.
5. Special / Future Projects :
Hesitant buying before the release of fully remodeled 1-ton pickups starting from 2011. And New Camry will launch SVP in 2012. Also Eco car which be one of the major project be intro- duced by several car manufactures. Friendly environment with suitable efficiency performance are considered by car manufactures. Hoping that Eco car will be success in the near future for the 2nd product champion car model after IMV model.
6. Competition Situation / Barrier :
The ongoing uncertainty caused by the environmental issues which affect the postpone of some investments at Map Ta Phut and the political unrest that unfolded in May of last year cast some doubt on whether or not the full year target for new investmentapplications would be achieved. This not only reflected the continuing growth in Thailand's economy, but also the continued confidence that investors have in the country and their under- standing that the uncertainties of the moment were in doubts.
In overall, Import and Export volume of Vehicles and component parts have been increasing compare with 2010 anyhow due to earthquake effect have impact to TOYOTA reduce production in Apr- May'11.
7. Supporting Factors :
From now, Thailand is participating in FTA Asian- South Korea , FTA Asian-India (Begin 1st January 2010) and FTA Asian-Australia New Zealand (Begin 12nd March 2010), with this agreement, Thailand will gain advantage on supply Asian source both export and import .The result of Tsunami and earthquake in Japan at the first quarter of 2011 causing many Japanese manufacturers to consider the movement of their production facilities to Thailand which will increase the competitiveness of Thailand for auto part exporting in global market.