Over the past 5 years Thai exports of auto parts have shown strong growth of 4%, higher than the 3% growth in of global car demand during the same period.
Particularly during the first half of 2017, Thailand’s auto part exports totaled USD 7 billion, up 12% from the first half of 2016.
Major trading partners were the world’s large automotive producers, such as Japan, the U.S., and emerging markets in which domestic production surged but still lacked production capabilities for several key parts. Therefore, those countries (Indonesia, Mexico, India, South Africa, the Philippines and Vietnam) must rely on importing auto parts from Thailand.
- During 2012-2016, Thai auto parts exports grew in line with 4% growth in global car demand. Exports to new auto producing countries performed particularly well, such as Indonesia, Mexico, India, South Africa, the Philippines, and Vietnam. In 2016, power-train parts registered the highest growth ever of 15% compared to the previous year, followed by 6% growth in electronics and body parts.
- EIC suggests Thai part producers consider investment plan in countries where automotive production is growing but the ratio of parts producers to auto makers is still small. This will capture business opportunities in emerging markets like Mexico, India, Indonesia, the Philippines, and South Africa. Moreover, businesses can further develop their products to be more competitive in existing markets to expand to new auto producers.
Accounting for 40% of auto part exports, power-train exports surged 15% in 2016 compared to last year the previous year. Exports of electronics and body parts grew 6%, while…
Thailand’s Auto Parts Suppliers: from regional to global players