trends and policy of thailand automotive industry … and policy of...trends and policy of thailand...

Trends and Policy of

Thailand Automotive Industry and

Electric Vehicles

Mr.Vichai Jirathiyut

President, Thailand Automotive Institute

December 3, 2015 (30 minutes)

1

2

Outline

I. World Automotive Industry Trend

II. ASEAN Automotive Industry Overview

III. Thailand Automotive Industry Overview and Current Position

IV. Policy & Trend

I. World Automotive Industry Trend

Global Economic Trend in 2050 impact to Thailand, be challenged by new competitors

Source: The Economist Intelligence Unit

I. Global Economic Trend Challenges for Thailand

Indonesia, Germany, Japan, Brazil, UK

I. World motor vehicle production

Source: International Organization of Motor Vehicle Manufacturers (OICA)

I. World motor vehicle sales

Source: International Organization of Motor Vehicle Manufacturers (OICA)

II. ASEAN AUTOMOTIVE INDUSTRY OVERVIEW


Thailand• Population : 68 million• Production : 1,880,007 units• Sales : 881,832 units• Product Champion : 1-ton Pick up, Eco Car

Indonesia• Population : 255 million• Production : 1,298,523 units• Sales : 1,208,019 units• Product Champion : MPV, LCGC

Philippines• Population : 103 million• Production : 88,845 units• Sales : 234,747 units• Product Champion : Auto parts (Transmission)

Vietnam• Population : 92 million• Production : 121,084 units• Sales : 133,588 units• ProductChampion

:Motorcycle

Malaysia• Population : 30 million • Production : 596,418 units• Sales : 666,465 units• Product Champion : Passenger Car

ASEAN Key Indicators• Population 2014 : 629 million • GDP 2014 : 2,465 billion USD• GDP Growth rate 2014 : 5.7 % • Total Production : 4.0 million units• Total Sales : 3.2 million units

Source: ASEAN Automotive Federation (AAF)Note: ASEAN countries exclude Cambodia, Laos and Myanmar

2,0222,216

2,697

2,124

3,102 2,995

4,238 4,439 Production 3,985

1,782 1,8872,127

1,913

2,516 2,596

3,473 3,550Domestic sales

3,190

0

1,000

2,000

3,000

4,000

5,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

(thousands) ASEAN Motor vehicle production and sales



11,24113,217

14,61013,634 13,869 Sales, 13,56311,452

13,84314,982

14,099 14,546 Production, 14,164

0

5,000

10,000

15,000

20,000

2009 2010 2011 2012 2013 2014

(thousand)

ASEAN Motorcycle production and sales

Source: ASEAN Automotive Federation , Analyze by Thailand Automotive Institute Note: ASEAN countries exclude Cambodia Laos and Myanmar

II. ASEAN Truck Production

81,332

55,766

100,230

120,522

147,010

136,746

125,610

2008

2009

2010

2011

2012

2013

2014

Indonesia

7,976

6,861

9,497

8,112

8,970

3,700

4,720

2008

2009

2010

2011

2012

2013

2014

Philippines

4,146

3,217

4,384

6,012

5,194

4,620

5,100

2008

2009

2010

2011

2012

2013

2014

Malaysia

13,018

10,930

16,258

14,466

34,852

41,342

14,930

2008

2009

2010

2011

2012

2013

2014

Thailand

1,334

884

1,952

1,277

1,570

2,020

2,600

2008

2009

2010

2011

2012

2013

2014

Vietnam

Source: OICA, Analyze by TAI

II. ASEAN Bus Production

2,956

2,328

4,106

4,195

5,299

4,702

4,683

2008

2009

2010

2011

2012

2013

2014

Indonesia

1,208

798

1,081

1,128

589

856

740

2008

2009

2010

2011

2012

2013

2014

Malaysia

376

458

487

463

582

756

589

2008

2009

2010

2011

2012

2013

2014

Thailand

Source: OICA, Analyze by TAI

Vietnam : n.a.

Phillipines : n.a.

ASEAN strengthen with the comprehensive partnership

ASEAN +3 [Japan, China, Korea]

ASEAN + 6 [RCEP] [Japan, China, Korea, India, Australia,

New Zealand]

*RCEP: Regional Comprehensive Economic Partnership

III. THAILAND AUTOMOTIVE INDUSTRY OVERVIEW

AND CURRENT POSITION

III. Thailand Positioning in World Motor Vehicle Production Ranking

Production 2014 (x1,000,000 units)

1. China 23.72 6. India 3.84 11. Russia 1.89

2. USA 11.66 7. Mexico 3.36 12. Thailand 1.88

3. Japan 9.77 8. Brazil 3.14 13. France 1.81

4. Germany 5.90 9. Spain 2.40 14. UK 1.59

5. South Korea 4.52 10. Canada 2.39 15. Indonesia 1.29

2

7

8

10 4

9

11

13

143

1

6 12

15

5

Data source: OICA ; Analyzed by TAI

World motor vehicle production ranking 2014

15

23

million

7

million

16

million

World motorcycle production ranking 2013

Production 2013(x1,000,000 units)

1. China 22.89

2. India 16.41

3. Indonesia 7.78

4. Vietnam 3.26

5. Thailand 2.21

III. Thailand Positioning in World Motorcyle Production Ranking

International car production base

III. Thailand Automotive Industry Overview

Source: Analyzed by Automotive Intelligence Unit (AIU), TAI, 2015


VI. Policy and Trend

MalaysiaGreen Initiative

- Announced NAP 2014

- Target: EEV (Energy Efficient Vehicles) means efficient with

CO2/km. and fuel consumption (incl. ICE, Hybrid, EV, CNG,

LPG, Biodiesel, Ethanol, Hydrogen, Fuel cell)

- The 3 main directions: Investment, Technology and

Engineering and Market Expansion

- The 3 main strategies: Human Capital Development, Supply

Chain Development and Safety, Security and Environment

IndonesiaPromoted Low Cost Green Car

And Low Carbon Emission

Program (LCGC & LCEP)LCGC: 20 km./L. GV 1.0-1.2 cc., DV1.0-1.5 cc.

Luxury tax 0% from current rate 10%

LCEP: • FE 20-28 km/L:

25% reduction (currently 20-75%)

• FE 28 km/L and more:

50% reduction (currently 20-75%)

• Electric vehicles: 0%

ThailandVISION “Thailand is a global green automotive production base with strong domestic supply chains

which create high value added for the country”Promoted Eco car II

- Emission Standard EURO V CO2 <100 gram./km. - Fuel consumption 4.3 litr/100 km.

- Passive and Active Safety Standard based on UN ECE reg.

Source: NAP 2014 and AAF Report 2014

Trend of Policy on ASEAN Countries Automotive Industry

Analyzed by Automotive Intelligence Unit (AIU), TAI, 2014

VI. Policy and Trend of ASEAN Countries

Eco-car phase I Eco-car phase II

• Clean: Euro 4 or higher

(UN ECE R83 rev.2 (2005) or higher)

• Efficiency:

Fuel consumption < 5 L/100 km

CO2 emission < 120 g/km

(UN ECE 101 rev.1)

• Safety:

Passive : full frontal and side impact

protection based on UNECE regulations

(UN ECE R94 rev.0, R95 rev.0)

• Clean: Euro 5 or higher

(UN ECE R83 (06) rev.4 or higher)

• Efficiency:

Fuel consumption < 4.3 L/100 km

CO2 emission < 100 g/km

(UN ECE 101 rev.2 or higher)

• Safety:

Passive Safety: full frontal and side

impact protection based on UNECE

regulations Active Safety: ABS, ESC

(UN ECE R94 rev.1, R95 rev.1 or higher

and R13H rev.2 or higher)

Eco-Car Phase I vs. Eco-Car Phase II


Criteria Package: Car assembly + Engine

manufacturing + Part manufacturing Actual production not less than 100,000

units per year from year 4 Have to start by 2019 Qualification

4.3 liter per 100 km. Euro V standard CO2 not exceed 100 grams per km. Safety standard UN ECE R 94&95 Safety part: ABS ESC

At lease 4 of the 5 Cs of engine parts Investment minimum: 6.5 billion Baht Deadline submission 31 March 2014

Incentives Exemption of import duty on

machinery Up to 90% import duty reduction on

raw material Exemption on corporate income tax

of 6 years, not exceed the project investment amount

One or Two additional year if there is investment or expenditure in developing Thai auto part suppliers

Criteria and Incentives of Eco car II


E10 E20 E85 E10/E20 E85/NGV Hybridรถยนตน์ ัง่รถยนตน์ั่ง, รถยนตโ์ดยสารทีม่ีทีน่ั่งไม่เกนิ 10 คน ≤2,000 CC 30 25 22* ≤100 g/km

2,001-2,500 CC 35 30 27 101-150 g/km

2,501-3,000 CC 40 35 32 151-200 g/km >200 g/km

3540

3035

2530

>3,000 CC 50 50 50 >3,000 CC 50 50 50(เกนิ 220 HP)

PPV / DC / Space Cab / Pick up ≤3,250 CC ≤200 g/km >200 g/km

>3,250 CC >3,250 CCEco Car (Benzine/Diesel) / E85 1,300/1,400 CC ≤100 g/km

101-120 g/kmElectric Vehicle / Fuel Cell / Hybrid ≤3,000 CC

>3,000 CC >3,000 CCNGV-OEM ≤3,000 CC

>3,000 CC >3,000 CC

อตัราภาษ ี(รอ้ยละ)

โครงสรา้งภาษปีัจจุบนั

ประเภทรถยนต ์CO2

17/17

} 30* } 25* 10*

20

20/12/ - /3,18 25*/12/5/3,1830/15/7/5,18

505017 14*/12*

อตัราภาษ ี(รอ้ยละ)

โครงสรา้งภาษทีี ่ครม. มมีตเิห็นชอบ

ขนาดเครือ่งยนต ์(แรงมา้ HP)

2050

**50

101050

10**50

หมายเหตุ * : กาํหนดมาตรฐานความปลอดภยั (Active Safety) สาํหรบัรถยนตน์ัง่ รถยนตท์ีม่ทีีน่ัง่ไมเ่กนิ 10 คน ทีม่ี CO2 ≤500 g/km /รถยนต ์PPV ทีม่ ีCO2 ≤200 g/km /รถยนต์

Eco Car ทีม่ ีCO2 ≤100 g/km ** อยูใ่นโครงสรา้งของรถยนตน์ัง่ทีพ่จิารณาจาก CO2 เป็นหลกั * ทีม่คีวามจกุระบอกสบูตัง้แต่ 1,780 CC แต่ไมเ่กนิ 2,000 CC

Source: The Excise Department, Ministry of Finance (Thailand)

Structure of Thailand Automotive Excise Tax



Energy Efficiency Standardization


Thailand EV Campaign

NRC proposed the National EV promotion project to Thai government.


EV Promotion Recommendation Proposed by Ministry of Science and Technology

Source: Durongkaveroj, P. (Minister of Science & Technology) Strategy to promote Thailand as an ASEAN EV hub. Presented at Army Club (12 June 2015).


Action Plan for EV Promotion Proposed by Ministry of Science and Technology



Electricity generating capacity /

Grid readiness preparation

Studying and Demonstration Projects on EV in Thailand

Electricity

Consumption

Small EV for city use

Zero-emission EV-Bus


VI. Infra Structure – Testing, R&D Center

Thailand Automotive Testing Center

Investment Promotion Policy for Super Cluster

“Super Clusters” are clusters for activities using advanced technology, and future industries.

Previleges :

(1) 8-year corporate income tax exemption with exemption cap in accordance with the condition prescribed for the activity in BOI Announcement No. 2/2557 dated December 3, 2014

(2) A 50 percent reduction from the normal rate of corporate income tax on the net profit deriving from the promoted activity for a period of 5 years counting from the expiry date of the corporate income tax exemption

(3) Other incentives and privileges will be in accordance the criteria prescribed in BOI Announcement No. 2/2557 dated December 3, 2014

Super Cluster as of BOI Announcement 10/2558

Condition:-3.1 Must have cooperation with academic institutions, research institutes or

Center of Excellence in the Special Economic Development Zones in the form of clusters in a prescribed types of cooperation as follow: 3.1.1 Cooperation under the Talent Mobility, Work-Integrated Learning

Project or Cooperative or Dual Systems 3.1.2 Human Resource or Technological Development Cooperation as

approved by the Board of Investment 3.2 Must generate revenue within December 31, 2017 unless under necessary

circumstances, the Office of the Board of Investment may consider extension as deemed appropriate.

3.3 Must submit application for investment promotion within December 30, 2016

4. Project must be located in Ayutthaya, Pathum Thani, Chon Buri, Rayong, Cha Cheong Sao, Prachin Buri and Nakhon Ratchasima for the eligible list of activities as follows:



Type of Business Condition

4.7 Manufacture of automobile engines Project must have part forming, not less than 4 out of 5 parts,

as follow:

Cylinder Head, Cylinder Block, Crankshaft, Camshaft and

Connecting Rod.

4.8 Manufacture of vehicle parts

4.8.1 Manufacture of vehicle parts using high technology including:

4.8.1.1 Substrate for Catalytic Converter

4.8.1.2 Electronic Fuel Injection System

4.8.1.3 Automotive Transmission

4.8.1.4 Electronic Control Unit (ECU)

4.8.2 Manufacture of automobile parts for safety parts and

energy-saving parts

4.8.2.1 Anti-Lock Brake System (ABS) or Electronic Brake

Force Distribution (EBD)

4.8.2.2 Electronic Stability Control (ESC)

4.8.2.3 Regenerative Braking System

4.8.2.4 Idling Stop System

4.8.2.5 Autonomous Emergency Braking System



4.8.3 Manufacture of parts for Hybrid, Electric Vehicle (EV) and Plug-in

Hybrid Electric Vehicles (PHEV)

4.8.3.1 Battery

4.8.3.2 Traction Motor

4.8.3.3 Air-condition system

4.8.4 Manufacture of rubber tires for vehicles

4.8.5 Manufacture of Fuel System Parts including

4.8.5.1 Fuel Pump

4.8.5.2 Injection Pump

4.8.5.3 Injector

Projects must have part forming process and assembling

process as approved by the Board.

4.8.6 Manufacture of Transmission System Parts including

4.8.6.1 Sun Gear

4.8.6.2 Ring Gear

4.8.6.3 Shift Gear

4.8.6.4 Transfer Case





4.8.6.5 Torque Converter

4.8.6.6 Carrier

4.8.6.7 Propeller Shaft

4.8.6.8 Drive Shaft

4.8.6.9 Universal Joint

4.8.6.10 Differential



4.8.7 Manufacture of Engine System Parts including

4.8.7.1 Turbocharger

4.8.8 Manufacture of Safety Parts including

4.8.8.2 Manufacture of Air Bags including

4.8.8.2.1 Inflator





4.12 Manufacture of motorcycles (except less than 248 cc engine

displacement)

1. Project must have forming process of engine parts, as

follow:

Cylinder Head, Cylinder Block, Crankcase, Crankshaft,

Camshaft and Connecting Rod.

1.1 For manufacturing motorcycles with more than 248 cc

engine displacement but less than 500 cc, project must have

forming of not less than 4 out of 6 parts.

1.2 For manufacturing of motorcycles with more than 500 cc

engine displacement, project must have forming of 2 out of 6

parts.

2. Project must have structural welding process and spray

painting process.

3. Investment plan for manufacturing and utilization of parts

must be submitted and approved by the Board of Investment.

Direction of Electric Vehicle in Thailand

Short Term :

Promote in public transport vehicle ex. E-Bus, etc.

Preparing Infrastructure

Consumer awareness about environmental and energy saving

Study about BEV in Pro. & Con.

Promoting and enhancing production capability for local manufacturer and part supplier for

components

Medium and Long Term :

Promoting and enhancing production capability for local manufacturer and part supplier for

components

Continuing Infrastructure preparing and expand

Thank You

Thailand Automotive Institute

www.thaiauto.or.th

trends and policy of thailand automotive industry … and policy of...trends and policy of thailand...

Documents