Thailand Overtakes China as Cheap Auto Production reports Port Containers
Developing country exports key to boom in country and for companies
The experts of Hilux pickup trucks, Fortuner SUVs as other models have assisted the Southeast Asian nation overtake China as the third largest global production as Toyota's hub over the last year. The growth has spurred Nippon Yusen KK, which stands as the world's largest operator of roll-on, roll-off ships, forecasted at 3.45 million vehicles over the upcoming fiscal year. That will be the most in the last half-decade as well.
Toyota has three factories within the country, and Honda Motor Company, as well as Nissan Motor Company, who plan to spend over $850 million in order to boost capacity in Thailand. All of the companies use the country as an exportation base for developing countries, unlike China where production is toward the domestic market.
That fact has Nippon Yusen adding ships and Mitsui OSK Lines Ltd. Predicting a new record for total volume of cars.
“Thailand is a flourishing market for shipping lines,” said Ryota Himeno, an analyst at Barclays Securities Japan Ltd. “Its ports have been upgraded. It’s also close to emerging economies in Asia.”
The automakers include Ford Motor Company and Hyundai Motor Company, who also use low-cost vehicle production areas within countries like Thailand and India, which in turns boosts the need to ship vehicles to import markets like New Zealand and Australia.
“NYK expects the worldwide demand for pure car and truck carrier transport to steadily expand,” said Nippon Yusen in a statement released in October. NYK’s ships call on Thailand as many as 150 times a year, spokesman Koji Sasaki said in an e-mail.
Shares for Nippon Yusen feel almost 1% to 221 yen at the close of Tokyo at the close of last week. The stock has gained 10% on the year overall. Mitsu OSK fell 1% as well, but holds a 20% gain for the year.
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