Issue04 : 26 May 2014
Thailand is the largest manufacturer of automobiles and auto parts in ASEAN, but what will the car industry of the future resemble?
A key question facing the automotive industry is what will be the car of tomorrow? Depleting oil reserves and rising environmental concerns have made the gas-guzzler a thing of the past, but what will replace it in the showroom. The issue was debated at the TAPA (Thailand Auto Parts & Accessories) 2014 trade show at the Bangkok International Trade and Exhibition Centre (BITEC) held from April 28 to May 1.
The exhibition was anticipated to attract more than 16,000 visitors over the four days of the event generating revenue of 800 million baht (US$24.6 million), augmenting what is already the largest automobile and auto-parts industry in the region. It is estimated that this year 2.4 million cars will roll off the country’s production line – half for export and half for domestic use. Already the country is responsible for more than half of the automobile and auto-parts production in ASEAN, and is ranked ninth for automobile construction worldwide.
One car manufacture convinced it knows which way the wind is blowing for its industry is BMW. “The automotive market in the future will be much different from the past,” said Jan Ehlen, head of government affairs Southeast Asia (ASEAN), BMW AG at TAPA. “Today, global mega trends like increased urbanization and environmental concerns influence the way cars are being sold, produced, designed and developed.”
Think of leather, think of major European fashion houses, think again. Thailand’s designers are trying to challenge normal conventions both home and abroad.
It is hard to conceive of any brand of leather goods that is not European. Famous names like Louis Vuitton, Gucci or Hermés are imbued with images of Parisian boulevards or the narrow lanes of Florence. Yet, times are a-changing with Thailand ready to increase its market share in exotic leather goods – bags and wallets made from crocodile, ostrich and even stingray leather.
“Thailand has long been famous for its tanned exotic leather,” says Veera Lertruangpunyavut, the vice president of Thai Leather Goods Association. “And now we’re ready to export our own brands.”
The market for exports of Thai leather goods is already huge. The value of Thai leather goods exported last year reached US$1.7 billion. According to Lertruangpunyavut the majority came from exotic leather goods.
“We have materials, skilled labour, and designers,” he says. “I think the only obstacle in making Thai brands famous is a lack of knowledge of branding.” His association is now helping to eradicate this weakness, by inviting experts in branding and trendsetters to talk in Thailand, as well as offering a free management course. Also, the DITP helps by offering courses and workshops in design.
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