ABSTRACT
Thailand’s automotive industry started earlier than neighbouring countries, in the 1960s. Like the overall economy, it has gone through different policy regimes from import substitution to export promotion and liberalisation. Like the electronics industry, it has been dominated by TNCs, especially Japanese automakers. Thai suppliers were very much concentrated in less technologically sophisticated parts. Nevertheless, unlike the electronics industry, Thailand moved up the global value chain. Several foreign automakers started to invest in more sophisticated activities like design, advanced testing and engineering. Large Thai suppliers set up technology development centres. Industrial policy worked better in this industry, as the government designated product champions: the one-ton pickup truck and eco-car. The Thailand Automotive Institute was also an important intermediary role of a sector-specific promotion agency in linking TNCs with local firms and firms with universities.
