Toyota Motor Thailand is vying to become a global production base for passenger cars, as well as pickup trucks. Company president Kyoichi Tanada is lobbying strongly for the parent company in Japan to relocate production of key passenger cars for world markets and expects a decision to be made within a year.
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The company currently exports one-tonne pickup trucks to around 190 markets worldwide, with output estimated at around 350,000 units last year. But its passenger cars, including the Yaris, Camry, Vios and Altis, are only shipped to other ASEAN markets and to Australia [which has a free trade agreement with Thailand – ed].
“We are working hard to convince our parent company in Japan to make the investment in Thailand”, Tanada said, noting that other Toyota subsidiaries in the region are also competing fiercely for this investment. “We expect it will take one year for Toyota Motor to decide”.
Toyota expects to produce around 630,000 vehicles in Thailand this year, including 330,000 units for export – 39% more than last year. Domestic sales are expected to rise by 30% to 300,000 units.
Toyota has three vehicle production facilities in Thailand – the Gateway plant in Chachoengsao, which makes passenger cars; the Ban Pho plant also in Chachoengsao, which makes pickup trucks and SUVs; and the Samrong plant in Samut Prakan – just east of Bangkok, which also makes pickup trucks.
Tanada-san is proposing to expand capacity at the Gateway plant, and is necessary also at the Ban Pho plant, to accommodate the additional export volumes. Its main competitor for the investment is expected to be Toyota Motor Manufacturing Indonesia, which makes the Innova MPV and the Fortuner SUV.
Meanwhile, AutoAlliance (Thailand) is awaiting a final decision from Mazda Motor of Japan to relocate Mazda 3 production from the Philippines, after a decision was made to produce the Ford Focus at a new US$450m plant in Rayong.
