Thailand is a major player in Asia's automotive market. It has become the second largest market for pick-up trucks .

In 2004, Thailand automotive industry produced about 928,081 vehicles. It was a turning point for automotive industry in Thailand and was responsible for international recognition.

Thailand automotive industry advantages
Thailand has abundant natural resources and skilled manpower. This is particularly so for Thailand's automotive industry. Thailand being a founding member of Association of Southeast Asian Nations (ASEAN), it has free access to the automotive market in Asia. Government support for automotive industry in Thailand has also been instrumental in improving prospects for this particular sector.

Investment friendly
Thailand welcomes foreign investment. Advantages for foreign investors include nil export and location requirements. Thai Government also does not impose foreign equity restrictions on manufacturing companies. Setting up a new business in Thailand involves relatively low costs. In fact, Mercer HR Consulting ranks Bangkok as one of the inexpensive Asian cities.

Major automobile companies in Thailand
Major exporters of vehicles in Thailand include Mitsubishi, Ford, Mazda, and Honda. Nissan, Toyoto, and Isuzu are some of the other popular automotive companies in Thailand. Sale of passenger cars is dominated by Toyota and Honda in Thailand. Pick-up market is dominated by Isuzu and Toyota. In fact Toyota and Isuzu together account for more than 50 percent of total vehicle market in Thailand.

Trade agreements
Thailand shares free trade agreement with countries like Australia, New Zealand, China, and India. Asian Free Trade Agreement was responsible for creating significant opportunities for Thailand's automotive industry in Southeast Asia market.

Slowdown
Automobile sales in Thailand have been going through a slowdown. Rise in fuel costs and inflation are two major reasons why Thailand is experiencing a slowdown in sales. In June 2008, sale of commercial vehicles saw a decrease of 20.9 percent. Sale of pickup vehicles also declined by 23.2 percent. But before June 2008, total vehicles sales increased by 9.9 percent to 321,475 vehicles. Recession and increase in cost of raw materials were also responsible for Thailand automotive industry slowdown.

Future prospects
Though slowdown in sale of automobiles has affected Thailand's automotive industry, future prospects look promising. Thailand's abundant natural resources is likely to help its automotive industry. Thai Government is also taking a keen interest in developing the automotive industry.