ABSTRACT
The automotive industry in Thailand grew rapidly over the two decades to 2012. In addition, in order to gain an insight into the nature of the supply chain in the Thai automotive industry, firm interviews were conducted. The Thai policy regime relating to the automotive industry has evolved, as an integral part of the overall industrialisation strategy, through two distinct phases. Liberalisation through free trade agreement (FTAs) for the automotive industry began in the mid-1990s through the ASEAN Industrial Cooperation (AICO) scheme in November 1996. The programme aimed to promote trade in parts and components among automotive companies operating in ASEAN member countries. Evidence from interviews in this study suggests that the process of knowledge and technology transfer from original equipment manufacturing (OEM) firms and final assemblers to suppliers at the lower tiers has strengthened over time, as the automotive industry has become increasingly globally integrated.
