Indonesia and Thailand set to become the 2-Major Auto Production Hubs


Recently, it has been said that Thailand automotive industry need not worry about the rapid growth of Indonesia’s auto market, since both nations are presently expected to play prominent roles in both local and global markets.

Most of the leading industry experts are stating that both Indonesia and Thailand are all set to turn into the 2 prominent auto production hubs in this part of the world, and will precisely complement each other instead of competing.

Thailand had started to promote improvement of its auto industry very aggressively nearly more than 3 decades before, and back in 1995, it had been named as the “Detroit” of the Eastern region by the largely renowned Business Week magazine.

Almost all the largest auto manufacturing firms of the world have production units and supporting business networks in the Thailand market to handle heavy domestic demand, and also to make product deliveries all over the world. They include international auto players including Ford, Toyota Motors Corp, and General Motors, and local automotive players like Tata Motors.

Recently the growth of Indonesia, which is presently the largest economy in the whole of Asia with almost 4 times the populace that of Thailand, has actually stimulated many industry onlookers to agonize that Indonesia may become the zone’s center for auto production in the near future, clearly surpassing the Thailand auto market’s production capability.

But, some leading industry leaders utter that such anxieties are completely overdone. They strongly believed that face to face rivalry between the two regions is almost unlikely, since the 2 nations are supplying into 2 distinct marketplaces, and have dissimilar requirements. Toyota Motors Corp’s Asia Pacific President, Kyoichi Tanada, most recently informed that the markets for Thailand and Indonesia are drastically different from each other, and each nation is engaged with totally dissimilar segments.

Mr. Tanada, one who chiefs the company’s operations from Korea to Indonesia (not including Japan and China), and from India to Australia, told that since both Indonesia and Thailand are catering the needs of two different segments, auto manufacturers in the 2 nations would require to produce different forms of cars. The potency of Thailand market was in the production of pickups, while Indonesian auto market has come to stand out particularly in small passenger vehicles or minivan models including Innova and Avanza, two well-known Toyota build vehicles.

As per the recent reports, the America based Ford Motors Corp also has faith in the new perception of complementary vehicle production in the 2 nations.


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