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Thailand Auto Components
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Transcript of Thailand Auto Components
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Overview of ThailandThailand is a country located in South-East Asia
bordering the Andaman Sea and the Gulf of ThailandThailand has a developing economy that mainly deals in
agriculture and manufacturingThe other areas of Thailand’s economy are run by:Forestry- Forests cover about 60 percent of Thailand
and teak the chief forest product. Anchovies, mackerel, crabs and shrimp are caught in the river and coastal waters
Mining- Tin is Thailand’s most important mineral. Mine’s in Thailand also produce bauxite, iron ore, manganese
Tourism- Tourism contributes to at least 5% of the GDP and is an important source of income
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GDP: $586.9 billion (2011)
GDP - composition by sector:agriculture: 12.4%industry: 44.7%services: 43% (2011)
1 Thai Baht = 1.6312 INR
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International TradeMajor Exports:
MachineryTextileRiceRubberJewelry
• Major Imports: Capital goodsConsumer goodsRaw materialFuel
• Major Export Partners: ChinaJapanUSAHong KongMalaysia
• Major Import Partners: South KoreaChinaUSAMalaysiaJapan
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Automotive Component Market in IndiaThe Indian automobile components industry has
come a long way since the country’s economic liberalization.
From a quiet supplier of low-value components to the domestic aftermarket, the industry has transformed itself into a global hub for sourcing a range of high-value and critical automobile components.
The industry is the darling of many global auto makers such as GM, Toyota, Ford, Volkswagen, etc., who source auto components worth millions from India.
In fact, the industry is one of the front runners for grabbing the auto components outsourcing market estimated to be worth US$700 billion by 2015
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Auto Component Market- Segments
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The number of players in the unorganized sector is way higher than those in the organized sector
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There has been robust market growth over the last 6 years
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Exports have aided overall growth in the industry
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Exports are driven by India’s competitive advantage over its peers
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Automotive Market in ThailandThe automotive cluster has been the priority sector
for the economy of Thailand
It is the third largest sector contributing 12% of the GDP
Thailand currently ranks as the 12th largest auto
manufacturing country
Thailand’s automotive industry is the South East Asia’s largest and most advanced automotive industry and is called the ‘Detroit of Asia’
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Thailand produced 1,645,304 vehicles in 2010, a 100% growth since 2005 (Thai Automotive Institute, 2011)
Thai car sales increased 53.4 percent from 2010, further proving true that it is indeed Southeast Asia’s biggest car market
Last year exports of motor vehicles grew 55.2%, production climbed 20.7% and sales of automobiles increased 18.6% according to the Office of Industrial Economics
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Who are we??We are an “ISO / TS 16949” certified company
engaged in manufacturing of transmission & drive train parts like sub assemblies, gears, shafts, shifter forks & other precision machined parts for the past 20 years
Currently we supply to automotive & engineering OEMs in the domestic and international market
The present contribution of export is 10% of total turn over.
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We are possessors of specialized technology and machinery that give us an edge over other manufacturers
We are based in Bhosari, the industrial belt in Pimpri- Chinchwad
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Our Product• Product: Gear Shaft
• Gears are either mounted to, or are a part of, a gear shaft
• Essentially, the gear shaft is the axle of the gear, providing the rotation that allows one gear to engage with and turn another.
• HS Code: 848310
• Order: 2000 nos.
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Process and machinery required
A shaft is a holder for the gear in automobiles
It is a small, but integral part of a vehicle
It has a standardized procedure:Turning- CNC machineGrooving- CNC machineGrinding- Milling machineHeat Treatment- Furnace
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Processes carried out by usManufacturingPackagingExport activities
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Market ChallengesDuty drawback and incentives: Auto component exporters find duty drawback
a cumbersome and time-consuming process due to multiplicity in processes and interfaces. Currently, it takes anywhere between 3 months to 6 months to get duty drawback amount
Exhibitions in foreign markets: The fund provided by the Government for
participating in foreign exhibitions is too meager and hence is not of much use.
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Market EntryThailand has an Institution called the TAPMA
which is an institution set up to promote the development of manufacturers of auto parts
This makes setting up a business or manufacturing plant unfeasible
This is an important trade barrier that needs to be taken into account
That is why we chose direct exports to loyal customers
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SchemesEPCG Scheme Relaxations
To increase the life of existing plant and machinery, export obligation on import of spares, moulds etc. under EPCG Scheme has been reduced to 50% of the normal specific export obligation
Department of Heavy Industries & Public Enterprises
The Department of Heavy Industries & Public Enterprises has also suggested creating a fund worth US$ 0.2 billion (INR 10 billion) to mordernise the auto components industry by providing an interest subsidy on loans and the purchase of new plants and equipment.
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PromotionTrade fairs are the most effective marketing
vehicle in Thailand as they are very common and very enthusiastically attended
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The PricingParticulars pcs Amount
A Cost of Manufactured goods/20 footer container
2000 4000000
B Factory stuffing 2000 5000
C Logistics(factory to Nhava Sheva) 1*20 footer container
15000
D Freight (Nhava Sheva to Laem Chabang)
1*20 footer container$250,250*49.7
12425
E Profit@12% on (A+B+C+D) 2000 483891
F Sales Price (on CIF basis) 2000 4516316
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THANK YOU!!