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VIA BUSINESS TIMES : THE automotive sector's transformation map has and will continue to make Malaysia competitive, even with challenging free trade pacts like the Trans-Pacific Partnership (TPP), which Malaysia hopes to be a member. Signs of steady improvement in the sector have been showing in the past decade since the Asean Free Trade Area (Afta), Japan-Malaysia Economic Partnership Agreement and the Malaysia-Australia Free Trade Agreement (FTA), enabling Malaysia to be on the same page as the leading automotive countries in the world. "(Global) competitiveness is what we have been preparing for. Right from Afta, the government has been liberalising the industry," said Malaysia Automotive Institute chief executive officer Madani Sahari. With Afta, for instance, there is nothing to stop automotive manufacturers from using Indonesia to sell their vehicles to the Malaysian market. Both the trade pacts with Japan and Australia, which come into effect in 2016, will see zero...

To meet the rising demand in domestic and overseas markets, Toyota Motor Corporation (TMC) in Japan, and TMT decided to invest about 11,000 million Thai Baht in another new assembly plant in Thailand which is “Gateway 2” at Chachoengsao province to assemble passenger cars with the annual production capacity at the beginning of about 80,000 units with 1,500 employments. As a result, this will increase Toyota total normal production capacity of up to 770,000 units per year. The production at the Gateway 2 plant will start on 26 August 2013.

Via THE NATION: Prime Minister Yingluck Shinawatra would like to see German carmaker Volkswagen invest in the manufacture of eco-cars in Thailand, which has attractive investment-promotion policies and a strong automobile industry. Yingluck met with Volkswagen AG chief executive officer Christian Klingler and discussed problems and obstacles associated with manufacturing eco-cars in Thailand. Klingler was told that the government has policies to promote regional trade via investment in transport infrastructure, which will facilitate the transport needs of the private sector region-wide. Thailand is in a strong position to be a major regional manufacturing base for vehicles of various brands from several countries. She welcomed Volkswagen to explore the opportunities for eco-cars in Thailand. The Ministry of Industry and the Board of Investment are ready to provide assistance to the company should it be interested in investing in a plant here, she said. Klingler said Volkswagen was inte...

Via THE NATION: The Industry Ministry has announced that conditions for Phase 2 of the eco-car project are nearly finalised and will be forwarded to the Board of Investment (BOI) for next week's meeting. Meanwhile, the Federation of Thai Industries (FTI) has expressed concerns that rushing to get approval of Phase 2 of the policy could affect Phase I manufacturers. Industry Minister Prasert Boonchaisuk will chair a meeting today of the subcommittee for investment promotion policy to discuss Phase 2 of the eco-car policy, according to a ministry source. The results will be forwarded to the BOI meeting to be chaired by Finance Minister Kittiratt Na-Ranong next Wednesday. Planned policy of the eco-car is likely to be announced this year for next year's investment, the source said. Thailand hopes to have produced 3 million eco-cars by 2017. Five carmakers are expected to invest in Phase I of the eco-car project. They are Toyota, Honda, Mitsubishi, Nissan and Suzuki.

Proton has unveiled a hatchback version of the Prevé saloon - the Suprima S. Held at the Matrade Exhibition and Convention Centre, the Proton Suprima S was unveiled by the advisor of the Proton Group, Dr. Mahathir Mohamad, accompanied by Proton executive chairman Mohd Khamil and deputy chief executive officer Lukman Ibrahim. The company says the new model is its most well-equipped product to date, with the Premium variant offering a host of features never before seen in a Proton model. This includes Proton Infotainment with Android-based Operating System, rear LED light guides, DRL (Daytime Running Lights), Hill-Hold Assist, and Park Assist with front parking sensors. The Suprima S is powered by Proton's 1.6-litre turbo engine, mated to a seven-speed ProTronic CVT. Proton claims it delivers power and torque equivalent to a 2.0-litre naturally aspirated engine.

Thailand Automotive Industry Statistics - July 2013 Domestic car sales over the month totalled 98,251 units, down 25.4% on July 2012 and a decline of 7.33% on June. Sales volume stayed below 100,000 units for the first time in 15 months, because car makers had delivered all vehicles ordered under the first car scheme and due to stricter car loan conditions imposed by financial firms. Car sales over the first seven months of the year stood at 839,046 units, up 13.06% on the same period last year. A total of 82,710 vehicles were exported in July, down 13.99% on July 2012 and 14.01% on June, Surapong Paisitpatanapong, spokesman for the Automotive Industry Club, said on Thursday. The vehicle export value for the month stood at 39.45 billion baht, down 16.21% on July 2012, said Mr Surapong. Exports over the first seven months of the year (Jan-July) totalled 617,076 units, up 11.54% from the same period last year. Car exports accounted for 99.07% of the total for-export production output, sh...

The ASEAN automotive market is set to grow at a compound annual growth rate (CAGR) of 5.8% (2012-2019) to 4.71 million units in 2019, mainly driven by rapid market expansions in Indonesia and Thailand, market researchers Frost & Sullivan said today. Check out the whole story here .

According to 'usually well informed sources' VW is planning to announce a plant for passenger vehicles in early September - Start of Production 2017 marking the serious entry of European car industry into ASEAN. We'll continue to follow the story and keep you posted.

Via VietNamNet Viet Nam's automotive industry could face major collapse under commitments to the ASEAN Free Trade Area (AFTA) which will abolish auto import taxes in 2018. Mazda cars manufactured by Vina Mazda, a subsidiary of Mazda, at the Quang Nam-based Chu Lai – Truong Hai Complex roll off the production line. ASEAN + will waive taxes on car imports between ASEAN member countries, as well as Japan, South Korea and China, who are party to the agreement. The tax cut poses a disastrous threat to Viet Nam's fledgling auto industry, unable to compete with the price and quality of imports. "If we do not make immediate measures, Viet Nam would become a big auto importer in the region" said Ngo Van Tru, Deputy Head of the Heavy Industry Department of the Ministry of Industry and Trade. The last chance It has been 20 years since foreign car makers first built factories in Viet Nam. In spite of a long history of Government investment, Viet Nam's auto industry faces sign...

Via THE STAR : PETALING JAYA: Malaysia’s impending involvement in the Trans-Pacific Partnership Agreement (TPPA) has set tongues wagging about the potential impact it would have on various industries in the country in particular the local automotive sector. One argument is that signing such an agreement would open the markets to countries with closed markets, hence putting Malaysia and local car companies at a disadvantage. It is known that Japanese, South Korean, Chinese and European cars could benefit from the national status of Asean countries, merely by being assembled in those (Asean) countries with a minimum of 40% local content such as batteries, tyres and a few other components. Read the full text here

Thank you Doc Iain for the following report courtesy of Pattaya Mail : At the end of June, the Automotive Focus Group (AFG) invited Dr. Chaiyant Savanachai from BorgWarner Thailand who spoke about their current and future activities in Thailand and ASEAN. Dr. Chaiyant Savanachai is the General Manager, BorgWarner (Thailand) in control of Thailand operations, and reporting to HQ USA. Dr. Chaiyant Savanachai from BorgWarner Thailand. With a PhD in international Corporate Management, a Masters in International Economics and a Bachelor in Telecommunication Engineering Dr Chaiyant was an interesting speaker who was well qualified to address the AFG members. He began with an introduction to global BorgWarner, and then the BorgWarner ASEAN Development & Growth, finishing with a discussion as to where Thailand is heading and the challenges to Thailand in the global marketplace. He proudly pointed out that the Vision for BorgWarner was to be the global technology leader in powertrain soluti...

Bangkok Post: Benz Thonglor, a leading authorised dealer of Mercedes-Benz cars, has taken overwhelming sales orders for delivery at the end of next year, a sign luxury auto demand remains strong despite waning consumption in the first quarter. Wasun Bodhipimpanon, owner of Benz Thonglor, attributed the massive orders to new models but did not elaborate on the amount of orders. "The rosy economic sentiment has encouraged people to place orders. However, I am worried they may not accept the cars when delivered if the economy turns bleak," he said. Martin Schulz, vice-president for sales and marketing of Mercedes-Benz (Thailand), recently said at least six new models will be introduced this year, in addition to the 15 models already available. Mr Wasun said the most popular models have a price tag between 2.5 and 4 million baht. Each customer who places an order with Benz Thonglor is subject to a 50,000 baht per-car deposit. Mercedes-Benz sales volume through authorised dealersh...

SAIC Motor-CP Co., Ltd., an automotive industry joint venture founded by China-based automaker SAIC Motor Corporation and Thailand’s CP Group, has reached an agreement with Hemaraj Land And Development Plc. over the leasing of ready-built factories, representing a total area of 17,280 square meters, in Hemaraj Eastern Seaboard Industrial Estate. SAIC Motor-CP is planning to develop a production facility that will initially be capable of building 50,000 vehicles annually under the SAIC-owned MG English brand for Thailand and international markets. Shown in photo: Mr. David Nardone (5th from left) , President & CEO of Hemaraj Land And Development Plc. exchanges contract with Mr. Nopadol Chiaravanont, (5th from right) Director of SAIC Motor-CP Co., Ltd. while Mr. Wu Huan, (4th from right) President of SAIC Motor-CP Co., Ltd., Mr. Sawasdi Horrungruang (center), Director of Hemaraj Land And Development Plc., Mr. Vivat Jiratikarnsakul, (4th from left) Hemaraj’s Executive Vice President a...

With 40 players and 10 teams, the inaugural Automotive Focus Group (AFG) Golf Day at the Pattana golf course even surprised the organizers with the depth of support for this event. Not only was the event oversubscribed with enthusiastic golfers, most of whom were AFG members, but also the sponsorship purse far exceeded expectations, with companies such as Hemaraj Land and Development even offering 10,000 baht for a hole in one.  The excellent level of sponsorship also meant that there was more money for the charity raffle. Sponsors for the tournament includes CES (Kevin Fisher, shirts), Marriott (3D/2N JW Marriott), Hemaraj Land and Development (nearest pin and longest drive), Amari (brunches at Mantra), Cromwell Tools (power drill and golf bags), AB World Foods (“Curry for a Year”). The best team score on the day came from the Triumph Motorcycles (Thailand) Ltd. quartet of Jamie Looker, Russ Daleman, David Mills and David Sutherland. Runners-up were the team comprising Sean Goonan...

Tata has decided to postpone the development of the new facility in Thailand. Previously, Tata had announced it will enter the passenger car market in Thailand during the third quarter, when it will introduce the Nano budget vehicle.

FT April Numbers are here: A total of 67,641 vehicles were exported in April, up 22.02% on April 2012, but down 34.16% on March. Vehicle output in April stood at 170,438 units, up 17.40% on April 2012, but down 33.49% on March, due to fewer working days in the month. Domestic car sales over the month totalled 109,658 units, an increase of 24.91% on April 2012, but a decline of 30.39% on March. Car sales over the first four months of the year stood at 522,914 units, up 42.44% on the same period last year.

Bangkok Post: The Federation of Thai Industries (FTI) will this month review its full-year automotive export value target amid mounting pressure on car makers from the strong baht. "The number of cars, 1.1 million vehicles to be exported this year, will remain unchanged, but export value in baht terms may need to be revised due to the continuing strength of the currency," said Surapong Paisitpatanapong, spokesman for the FTI's automotive industry club. He said car makers have largely secured their international purchase orders through the end of this year, but the strong baht has put production costs on an upward track. Local pickup truck output sees 80-90% local content and passenger cars 60-70%. Mr Surapong said hardest hit is the pickup truck segment, regarded as the country's automotive export champion. Thailand's automotive industry enjoyed a bumper year in 2012, with 2.45 million vehicles made, up by 68.3% from 2011 and lifting Thailand to 10th place among c...

A recent report revealed that Toyota Motor Corporation (TMC) has plans to build the next-gen Yaris hatchback later this year at the Toyota Karawang plant in West Java, Indonesia. The reason is quite simple; Toyota Thailand will build the new Eco-Car products, so the Yaris production base should be moved to Indonesia. Read the article on THECARDRIVING here .

Via Bangkok Post:  VIENTIANE : Higher labour costs and a labour shortage in Thailand have prompted Japanese auto parts maker Asahi Tec Corporation (ATC) to build its new overseas factory in Laos. The 1.6-billion-baht plant in Savannakhet province will manufacture aluminium die casting parts. "The labour shortage and high cost of expansion are the main problems for the expansion plan in Thailand, so Savannakhet is our new investment destination," said ATC director and chairman Shoichiro Irimajiri. ATC's four factories in Thailand, which produce aluminium and iron casting parts, have already reached full capacity. A new company, BMM Asahi Tec, has been formed through an equal joint venture with leading Lao company BMM Group, which is involved in property development and duty-free retailing. The factory will be located in the Savan-Seno Special Economic Zone, which is expected to be a thriving hub of trade and services in the Greater Mekong Subregion. BMM Asahi Tec plans to ...

via Bangkok Post The government is considering collecting contributions from car makers to raise money to establish a centre for testing and research development. Contributions of 500 to 1,000 baht for each vehicle sold are being considered, according to Phayungsak Chatsuthipol, a member of the state's Strategic Committee for Reconstruction and Future Development (SCRF). Mr Phayungsak said SCRF chairman Virabongsa Ramangura has instructed the Thailand Automotive Institute to study the feasibility of gathering money from car firms to fund the centre's establishment. The institute has sought financial support from SCRF for its plan to set up the centre at a cost of 8 billion baht.