Thailand’s automobile manufacturing industry accounts for more than 10% of the country’s GDP, and is the number one manufacturing industry in Thailand in terms of value.

Since Thailand entered into the industry in 1961, it has become the number one automobile manufacturing centres in Southeast Asia. Virtually every globally recognized automobile producer has set up operations here to supply the domestic and international markets. The industry is on a course to expand into wider markets outside Southeast Asia. Currently number 15, the country is expected to break into the global top 10 in terms of production and export by 2010 despite the global economic crisis. In 2005 production of new vehicles passed one million units mark, and Thailand leads the world in the production of pickup trucks for export.

The conditions that enable this success are a highly skilled pool of labour force, the business environment that is conducive for both local and foreign investors, the high degree of technological innovation and transfer, the investor-friendly tax structure, the opportunities created by free trade agreements Thailand has ratified, and state-of-the-art infrastructure fir automotive cluster.

Integral to this industry is the autopart industry. Both Thai-made automobile and autopart industries are of the highest quality, a result of the successful and intensive technology transfer from leading international producers. There are three tiers of autopart companies in Thailand:

-          The first tier companies, also known as original equipment manufacturers (O.E.M.), comprise the group of parts manufacturer which supply the automobile producers.
-          The second and third tier companies are after market manufacturer (A.M.F.) and replacement equipment manufacturers (R.E.M.)

In all, there are nearly 2,000 parts manufacturers in Thailand, more than 700 of which are first tier.