Power Systems Research data and services are sold in Japan through our exclusive sales agent, Tohan Research. Please visit them at tohanr.com. A complete portfolio of databases, data extracts and survey services is available.
THAILAND–Vehicles produced in Thailand are exported to the world, including Asia, Oceania, the Middle East and Europe. However, the automobile industry is in trouble because of the double punch of the global economy slowing down due to the US-China trade friction and the spread of the new coronavirus.
Akihito Komuro
Exports, which account for half of Thailand’s automobile
production, where Japanese and other automakers such as Toyota and Honda have
production bases, have fallen, and vehicle production turned negative for the
first time in five years in 2019. In addition, the spread of the new
coronavirus is catching up. It is expected that the impact on Thailand’s
automobile industry will be even greater if the shutdown of factories in China
and production cutoffs are prolonged and parts procurement is delayed.
PSR Analysis: From about September 2019, it has been reported that many Southeast Asian automobile industries, including Thailand, have begun to slow down, but this has been attributed to a slowdown in trade due to US-China trade friction.
Today, of course, there is the same problem, but the rapid spread of COVID-19 is a new problem. Many automotive industries around the world are supported by the supply of parts from China, and a slowdown in supply could severely impact car production. Especially in Southeast Asia such as Thailand and Indonesia. PSR
Akihiro Komuro is a Research Analyst covering the Far East and Southeast Asia for Power Systems Research.
PSR Analysis: Isuzu has agreed to form a business alliance with Sweden’s Volvo in the Truck field and to acquire Volvo’s UD Trucks subsidiary. The amount of the acquisition depends on the negotiations, but Isuzu sees UD Trucks as a business size of 250 billion yen.
The Tokyo Motor Show was a major event that attracted 2 million people from the 1980s to the 1990s, but in recent years the number of visitors has decreased and the last exhibition in 2017 drew only 770,000 attendees.
Increased Uncertainty Causes Export-Investment Slump To Continue
In the August edition of
the Economic Trend Report (Green Book), the Korean Ministry of Planning
and Finance defined the recent Korean economy this way: “production has
increased moderately but exports and investments continue to be sluggish”.
New car sales from
January to June in six major countries in Southeast Asia were 1.7 million,
unchanged from the same period of the previous year.
Thailand and Indonesia are
the two major markets. Thailand, where consumption is strong, increased by 7%
year-on-year, while Indonesia, which faces a decline in resource prices,
decreased by 13%. Thailand could be ranked first this year for the first time
in six years.
Mitsubishi Heavy
Industries has begun manufacturing the basic structure of wind turbines at the
Nagasaki Shipyard, where excess capacity exists. This is because MHI’s
specialty LNG carriers are monopolized by Korean manufacturers and MHI is not
receiving orders. Now, they take on non-shipbuilding jobs and help maintain the
employment of the shipyard. Their Nagasaki Shipyard started manufacturing the
basic structure that supports large wind turbines. Since the shipyard has a
space for handling large parts of the ship, it can also be used to manufacture
wind turbines.
President and Founder, Japan Electrification Research Institute, Ltd.
SUMMARY. The global
auto industry is bubbling with changes and dramatic new ideas, but the current
declining financial performances of Japanese auto OEMs may force them to drop
out of the race temporarily before they can take advantage of the growing
demand for autonomous vehicles.
