1. Updated Information on Trade and Investment Opportunities in Thailand: Automotive Industry Part 1 Ms.Bussarakum Sriratana Director Thailand Board of Investment, Frankfurt Office

2. Thai Economy Overview

3. Thailand’s Global Economic Ranking Source: The Economist’s Pocket World in Figures, 2008 18 th largest Tourist Receipts 19 th largest Economy by Purchasing Power 20 th largest Manufacturing Output 25 th biggest Trader of Goods 27 th largest Industrial Output 30 th biggest Exporter as % of World Exports 35 th largest Service Output 36 th largest Economy

4. Thailand Economy at a Glance Population (2007)65 million ASEAN Population570 million Literacy Rate95% Minimum Wage (1 Jun. 08, Bangkok)EUR 4.06 GDP (2007)EUR 162 billion GDP per Capita (2007)EUR 2,455 GDP Growth (2007)4.8% GDP Growth (2008)*4.5-5.5% Export Growth (2007)18.10% Corporate Income Tax10-30% Withholding Tax10-15% Value Added Tax7% * Estimated USD 1 = THB 33 EUR 1 = THB 50

5. Top 15 Exports Item20042005200620072008 (Jan-Jul) Computer and accessories7,3779,48911,31611,9196,922 Motor cars, parts and accessories 4,4166,2067,2478,3035,202 Refine fuels1,4211,9002,7762,8143,305 Precious stones and jewelry2,1262,5872,7973,7032,937 Rice2,1671,8601,9642,3842,642 Rubber2,7492,9744,1103,8872,629 Electronic integrated circuits3,9294,7695,3525,5592,532 Polymers of ethylene, propylene, etc2,4963,3583,4283,5902,276 Iron and steel and their products1,9922,3102,6813,1531,954 Rubber products1,5601,8822,3452,5181,712 Chemicals1,6572,1152,6102,7011,668 Machinery and accessories1,3421,6902,0172,9781,606 Airconditioner and accessories1,5991,7471,7492,2051,484 Frozen and preserved seafoods1,8142,0062,2612,1801,368 Electronic equipment and accessories1,4781,7661,9102,5271,234 Source: Ministry of Commerce Unit: M.Euro (Euro 1 = Baht 50)

6. Top 20 Export Markets No. 200520062007 2008 (Jan.-Jul.) 1U.S.A.13,60614,81413,2407,5337,544 2JAPAN12,05812,47912,4047,0917,513 3CHINA7,3488,92010,2055,4306,469 4MALAYSIA4,6585,0395,3713,0263,946 5SINGAPORE6,1616,3726,5573,2283,894 6HONG KONG4,9415,4575,9082,9993,882 7AUSTRALIA2,5423,3053,9472,1612,867 8INDONESIA3,1792,5243,2741,8392,453 9VIETNAM1,8962,3382,6141,3302,047 10NETHERLANDS2,2202,4632,6191,4651,565 11UNITED KINGDOM2,2422,5882,4491,3961,391 12PHILIPPINES1,6461,9561,9981,1191,350 13S. KOREA1,8122,0322,0441,1381,264 14INDIA1,2221,3741,8341,0441,210 15GERMANY1,6061,7721,9801,0961,159 16TAIWAN2,1772,5622,2951,4541,103 17U. ARAB EMIRATES9421,1211,517793989 18CAMBODIA736940934515829 19ITALY9971,1361,273783794 20FRANCE1,0381,0851,137647706 Source: Ministry of Commerce Unit: M.Euro (Euro 1 = Baht 50)

7. 1China11Thailand 2India12France 3United States13Malaysia 4Russian Federation14Indonesia 5Brazil15Singapore 6Vietnam16Italy 7United Kingdom17Ukraine 8Australia18Japan 9Mexico19Canada 10Poland and Germany20Republic of Korea Source: UNCTAD World investment Prospects Survey, 2007-2009 Most Attractive Economies for the Location of FDI 2007- 2009

8. WORLD BANK Ease of doing business 2009 1 Singapore 12 Japan 2New Zealand13THAILAND 3 United States 20 Malaysia 4 Hong Kong 23 Korea 5 Denmark 61 Taiwan 6 UK 83 China 7 Ireland 92 Vietnam 8 Canada 129 Indonesia 9 Australia 140 Philippines 10 Norway 165 Laos PDR Source: World Bank, as of Sept 2008

9. Medium-Term (next 3 years) RankCountry 1China 2India 3Vietnam 4Thailand 5U.S. 6Russia 7Korea 8Indonesia 9Brazil 10Taiwan Includes production, sales, R&D, outsourced operations Long-Term (next 10 years) RankCountry 1China 2India 3Russia 4Vietnam 5U.S. 6Thailand 7Brazil 8Indonesia 9Korea 10Malaysia Includes production, sales, R&D, outsourced operations Source: JBIC FY 2006 Survey: Outlook for Japanese FDI (18 th Annual Survey) Promising Countries for Overseas Business Operations

10. 1United States11Korea 2Switzerland12Hong Kong 3Denmark14Taiwan 4Sweden21Malaysia 5Germany28Thailand 6Finland34China 7Singapore48India 8Japan54Indonesia 9United Kingdom68Vietnam 10Netherlands71Philippines Source: World Economic Forum, October 2007 Global Competitiveness Index 2007-2008

11. Source: JBIC 18 th Annual Survey Report on Overseas Operations by Japanese Manufacturing Companies Number of Surveyed Companies Looking to Strengthen or Expand in ASEAN-4

12. The Automotive Environment in Thailand

13. Auto sector 12% of GDP Largest auto producer in Southeast Asia World’s 2nd largest producer and market of pickup trucks. 16 assemblers with production of 1.3 mil. units in 2007: 36% exports Strong Supporting Industry ~ 1,800 suppliers of Tier 1, 2,3 High Local content : 80-90% for pick up and 30-70% for passenger car Automotives Target: Top 10 auto producer by 2010, producing 1,800,000 units

14. Economic Growth and Car Consumption Ra nk CountryGD P Gro wth (%) GDP per Capit a (US$) Popul ation (M. Perso ns) Pers ons per Car Domes tic Dema nd (Units /yr) 1USA 5.0 36,20 0 2782.1 17,440,000 2Japan1.3 24,90 0 1262.5 5,940, 000 3Germany 3.0 23,40 0 83 1.9 3,620, 000 4 United Kingdom 3.0 22,80 0 59 2.2 2.810, 000 5France3.1 24,40 0 59 2.2 2,550, 000 6Italy2.7 22,10 0 57 1.8 2,480, 000 7Canada4.3 24,80 0 31 2.2 1,630, 000 8Korea 9.0 16,10 0 47 4.0 1,130, 000 9Thailand4.5 2,800 62 10.0 700,00 0 10Belgium4.1 25,30 0 10 2.2 550,00 0

15. World Automobile Demand 2005 & ASEAN’s Free Trade Network Europe 21.0 M.Vehicles North America 20.0 M.Vehicles Total 66.0 Million Vehicles In 2005 Source: Japan Automobile Manufacturers Association http://www.jama-english.jp/asia/publications/voice/20060828.pdf Projection 2010: - China 9.0 Millions - India 1.9 Millions - ASEAN 2.6 Millions China 5.8 S.Korea 1.2 India 1.5 Japan 5.9 Austria & New Zealand 1.1 ASEAN 2.1 ASEAN & Free Trade Network 17.6 M.Vehicles Unit: Million Vehicles

16. Thailand : The Automotive Hub of Asia China Population 1,285 million Production 2005: 5.7 million Dom. Sales 2005: 5.7 million Biggest Share: Passenger Car Thailand Population 64 million Production 2005: 1.1 million Dom. Sales 2005: 0.7 million Biggest Share: Commercial Vehicle (1-ton Pick up) Korea Population 47.6 million Production 2005: 2.5 million Dom. Sales 2005: 1. 1 million Biggest Share: Passenger Car Japan Population 127.1 million Production 2005: 10.7 million Dom. Sales 2005: 5.9 million Biggest Share: Small & Compact Passenger Car India Population 914 million Production 2005: 1.6 million Dom. Sales 2005: 1.4 million Biggest Share: Passenger Car

17. Million Units Asia-Pacific Vehicle Production Capacity 2005-2010

18. Production in 4 ASEAN Source: Japan Automobile Manufacturers Association http://www.jama-english.jp/asia/asean/1996-2007_Production.pdf Thailand Indonesia Malaysia Philippines Units

19. Sales in 5 ASEAN Thailand Indonesia Malaysia Philippines Singapore Source: Japan Automobile Manufacturers Association http://www.jama-english.jp/asia/asean/1996-2007_Sales.pdf Units

20. Thai Automotive Industry Growth Source: Thailand Automotive Institute http://www.thaiauto.or.th/Records/eng/records_menu_eng.asp Year 2007 Production = 1,287,649 Units +8.4% Domestics Sale = 631,251 Units -7.5% Export = 690,100 Units +28.2% Units Production Domestic Sale Export

21. Passenger Cars1-Ton TrucksTruck Total Toyota Motor200,000350,000-550,000 Mitsubishi50,000150,000 6,000206,000 Isuzu Motors-200,00020,000220,000 General Motor40,000120,000-160,000 Auto Alliance-155,000- Nissan36,00098,4005,000139,400 Honda120,000-- Hino Motors--28,800 Thonburi16,300-- Yontrakij12,000-- BMW10,000-- Thai Swedish Assembly (Volvo)10,000-- Total494,3001,073,40059,8001,627,500 Source: Thai Automotive Institute Production Capacity in 2007

22. Company Domestic Export Total Prod. Toyota 263,968 237,774 501,742 Mitsubishi 21,222 146,252 167,474 Isuzu 102,747 61,048 163,795 Honda 61,226 80,096 141,322 Ford & Mazda 19,693 115,333 135,026 General Motors 71,245 27,180 98,425 Nissan 41,459 22,064 63,523 Mercedes Benz 2,037 BMW 1,505 299 1,804 Volvo 610 54 664 Other 11,837 Total Production 597,549 690,100 1,287,649 Source: Thai Automotive Institute Production in 2007

23. 20062007% Change Export - Automobile - Motorcycle - Auto Part 514,511.20 248,787.30 10,153.90 255,570.00 573,277.25 269,085.88 7,607.42 296,583.95 11.86 8.56 -24.68 16.52 Import - Automobile - Motorcycle - Auto Part 222,560.40 19,353.70 2,132.70 201,074.00 231,476.43 22,740.88 2,266.57 206,468.99 3.33 16.25 6.16 2.05 Export > Import291,950.8341,800.818.49 Thai Automotive Industry Import & Export 2006-2007 Million Baht Source: Thai Automotive Institute

24. Export Markets in 2007 Type of CBU Export 1 ton P/U = 514,592 units P Car = 154,234 units SUV = 26,544 units Truck = 0 units Total = 690,100 units

25. 2010 Target – World’s Top 10  Total production of 2 million units  Domestic sales of 1 million units –1-ton trucks – 700,000 units –Passenger cars – 250,000 units –Commercial Veh. – 50,000 units  Exports of 1 million units –1-ton trucks – 800,000 units –Passenger cars – 200,000 units

26. THAILAND OF INVESTMENT The perfect opportunity Thailand—Each Piece Fits Perfectly. www. boi.go.th