ABSTRACT
This chapter reviews the literature on the Thai automotive industry. It analyses trade in value added and the production network of the Thai automotive industry. The chapter investigates the industry by using the concept of the sectoral innovation system. It examines the trade pattern and the intra-industry trade (IIT) in the automotive industry in detail. This involved breaking down bilateral trade flows into two types: inter-industry trade or one-way trade, and IIT for automobile products and auto parts. Thailand's automotive sector has become part of the global production network of many car manufacturers. According to the International Organization of Motor Vehicle Manufacturers, Thailand is the largest producer car in Association of Southeast Asian Nations, followed by Indonesia and Malaysia. This marks another important milestone for the Thai automotive industry. Automotive firms in Thailand can be classified into three groups: assemblers, first-tier automotive parts suppliers, and second- and third-tier automotive subparts suppliers.
