Challenge of Mechanical and Automotive Engineering Program in Thailand to Support Thailand’s Automotive Industry
Yossapong Laoonual, PhD
Committee, Thai Society of Mechanical Engineers (TSME)
Assistant Professor
Department of Mechanical Engineering
King Mongkut’s University of Technology Thonburi (KMUTT)
Special Expert (joint appointment with KMUTT)
Thailand Automotive Institute (TAI)
Baden-Württemberg Forum Bangkok, 28th April 2014, BITEC Bangkok, Thailand
Contents
2
Thailand’s Automotive Industry
Challenge of Automotive R&D in Thailand
Role of Higher Education in Thailand’s Automotive Industry
Conclusion
Thailand’s Automotive Industry During 1960s • Auto industry regarded as a major
driver of Industrialization • BOI passed Industrial Promotion
Act and provided incentives for foreign investment in car assembly (50% reduction of import duties and trade taxes).
1971 – 1973 • Thailand announced its first
motorcycle industry policy (50% of motorcycle assembly parts be locally produced and later increased to 70%)
1972 – 1986 • Auto industry caused a substitution trade
deficit from import parts. • The policy changed from import substitution
to export promotion and import of completely built up (CBU) units were banned to promote local production and instituted local content requirements.
3 Source: Nittaya Wongtada and Tatchawan Kanitpong (2011) Thailand: Automotive and Auto Parts Industry in Facets of Competitiveness: Narratives from ASEAN, World Scientific Publishing Co. Pte. Ltd.
Thailand’s Automotive Industry 1986 – 1991 • Successful period
in Thailand’s economic development which attracted the investment of Japanese auto parts makers.
1997 • Asia
Financial Crisis
1998-2003 • Establishment of
Thailand Automotive Institute (TAI) to coordinate industrial strategies in 1998.
• Regarded Thailand as “Detroit of Asia”.
2007 - 2012 • In 2007, BOI announced its
investment promotion scheme for Eco-car manufacturing. (Exemption on corporate income tax and import duty of production machinery and up to 90% for raw material)
2013-Present • BOI announced
new eco-car phase 2 scheme.
• Ten OEM have official applied.
4 Source: Nittaya Wongtada and Tatchawan Kanitpong (2011) Thailand: Automotive and Auto Parts Industry in Facets of Competitiveness: Narratives from ASEAN, World Scientific Publishing Co. Pte. Ltd.
Thailand’s Automotive Industry
5 Source: Thailand Automotive Institute, April 2014.
Pure Thai
23 %
SMEs
Foreign J/V
Local Suppliers
Tier 1
LSEs
(Total 648 Companies)
[* LSEs : Large Scale Enterprises SMEs : Small & Medium Enterprises]
(Car 17 Companies, Motorcycle 7 Companies)
Assembler
(1,700 Companies)
Tier 2,3
Foreign Majority
47 %.
Thai Majority
30 %
Thailand’s Automotive Industry
6
Thailand’s Automotive Industry Growth, 1996 - 2013
Source: Thailand Automotive Institute (TAI) April 2014.
556 359
143 321
406 455 564
751
960 1,125 1,194
1,301 1,392
999
1,645 1,458
2,454 2,456
0
500
1,000
1,500
2,000
2,500
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
(thousand) Domestic sales Export Production
Note: Including passenger car, pick up 1 ton, van, bus, truck . Excluding motorcycle.
Thailand’s Automotive Industry
7
Import – Export of Thailand’s Automotive Industry
Source: Thailand Automotive Institute (TAI), April 2014.
Challenge of Automotive R&D in Thailand
8
Automotive Technology Roadmap for Thailand
Source: Study of Technology Road Map for Thailand’s Automotive Industry by MTEC, NSTDA & TAI in 2010 Photo: Thailand Automotive Institute (TAI), Ministry of Industry (2012) Master Plan for Automotive Industry 2012 – 2016.
9
“We have trained them (Thai people) to produce the cars and now the locally made cars are being exported around the world. The fact that customers in so many
countries are continually buying these cars shows that Thai work quality is excellent. Toyota understands that the potential of the Thai people is very high. In the future
looking beyond production to R&D, there may be the chance that our Thai employees will design the cars as well as produce them.”
- Mr. Kyoichi Tanada -
President of Toyota Motor Thailand and President of the Japanese Chamber of Commerce in Bangkok
Source: BOI (2012) Thailand’s Automotive Industry.
Challenge of Automotive R&D in Thailand Toward Production & R&D Base
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1991 •ISUZU Technical Center of Asia
1995 •THAI SUMMIT R&D Next Technology Co., Ltd.
1997 •HONDA R&D Southeast Asia Co., Ltd. (Motorcycle and multi purpose engine)
2003 •TOYOTA Technical Center Asia Pacific Co.,Ltd.
2007 change to •TOYOTA Motor Asia Pacific Engineering and Manufacturing Co.,Ltd.
2005 •HONDA R&D Asia Pacific (Automobiles)
2007 •DENSO International Asia Co.Ltd.
2008 •NISSAN Technical Center South East Asia
Types
OEM
1st Tier
Challenge of Automotive R&D in Thailand R&D and Technical Centers in Thailand
11
Master Plan for Automotive Industry 2012-2016
Source: Thailand Automotive Institute (TAI), Ministry of Industry (2012) Master Plan for Automotive Industry 2012 – 2016.
Challenge of Automotive R&D in Thailand
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“According to Master Plan for Automotive Industry 2012 – 2016, Thailand will focus on excellence in research and development (R&D), and will step forward to be the leader in R&D
in terms of research center of the ASEAN Economic Community (AEC) in 2015”.
- Mr. Vichai Jirathiyut - President of Thailand Automotive Institute
Source: MCOT. New president of Thailand Automotive Institute (TAI) emphasized that Thailand will be number 1 for automotive production base [in Thai]. URL: http://www.mcot.net/site/content?id=5358bba9be0470d0a08b4579#.U1vCy_mSxQg. 24th April 2014.
“ตามแผนแมบ่ทอุตสาหกรรมยานยนต ์ปี 2555 – 2559 ประเทศไทยจะมุง่เน้นสูค่วามเป็นเลศิดา้นเทคโนโลยกีารวจิยัและพฒันา และกา้วสูก่ารเป็นประเทศทีม่ศีนูยว์จิยัและพฒันาดา้นยานยนตข์องประชาคมเศรษฐกจิอาเซยีน
(เออซี)ี ปี 2558”
- คณุวิชยั จิราธิยตุ - ผูอ้ ำนวยกำรสถำบนัยำนยนต์
Challenge of Automotive R&D in Thailand Thailand Automotive Institute
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OEM and 1st Tier
Strictly requirement on the pollution and safety standard and regulation
Customer demand on fuel-efficient vehicle
2nd Tier and SME
Lack of technological advancement
Upgrading Thai local SMEs to be regional/ global suppliers
Insufficient number of engineers/researchers/workforce
Challenge of Automotive R&D in Thailand
14 Source: BOI (2013) Eco cars: Modest or No Greenhouse Gasses, Industrial Focus, Thailand Investment Review, Dec 2013, Volume 23, No. 12 http://www.boi.go.th/tir/issue/201312_23_12/42.htm
Challenge of Automotive R&D in Thailand Additional Right and Benefit of Eco-car Phase 2 Scheme
Corporate Income Tax Exemption Note - Exempted tax shall not exceed the investment
value of the project excluding cost of land and working capital
- The investment plan or expenditures in developing Thai Auto-part suppliers and mold & die manufacturers must be approved by the BOI
Normal incentive 6 years, regardless of zone Additional right and benefits Additional one more year shall be granted if the project invests or spends on development of Thai auto parts suppliers and mold & die manufacturers of not less than Bt500 million during the first five years of corporate income tax exemption period.
Additional right and benefits Additional two more years shall be granted if the project invests or spends on development of Thai auto parts suppliers and mold & die manufacturers of not less than Bt800 million during the first five years of corporate income tax exemption period. Also import duty exemption on machinery is provided.
Role of Higher Education in Thailand’s Automotive Industry
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Mechanical Engineering
Automotive Engineering
Automotive Engineering Program
• Most automotive engineering program based on mechanical engineering program.
• Available automotive programs in Thailand
• B.Eng. in Automotive Engineering • Non-B.Eng. in Automotive Technology • M.Eng. in Automotive Engineering
16
Production & Manufacturing
Materials
Structure, Body &
Aerodynamics
Electrical & Electronics
Automation and Controls
Vehicle Dynamics
Comfort and Safety
Economics
Car Photo : http://www.automotive-stock-images.com/sedan-cutaway-import.html
Subjects Required for Automotive Engineering Program
• Basic subjects on mechanical engineering.
• Incorporating elements of electrical, electronics, production, software and safety engineering.
• Specific subjects based on main component parts in automotive technology and innovation.
Role of Higher Education in Thailand’s Automotive Industry
Role of Higher Education in Thailand’s Automotive Industry
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Chulalongkorn University •B.Eng. in Automotive Engineering (Thai Program)
•B.Eng. in Automotive Design and Manufacturing Engineering (Inter)
KMUTNB •B.Eng. in Automotive Engineering Technology (College of Industrial Technology)
KMUTT •B.Eng. in Mechanical Engineering (Automotive), in preparation (Expected in 2015)
Suranaree University of Technology •B.Eng. in Automotive Engineering
Thammasat University •B.Eng. in Automotive Engineering (English Program)
Prince of Naradhiwas University •B.Eng. in Automotive Engineering Technology
B.Eng. Program in Automotive/Mechanical Engineering in Public University
Role of Higher Education in Thailand’s Automotive Industry
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Rangsit University • B.Eng. in Automotive Engineering
Siam University • B.Eng. in Automotive Engineering
Sripatum University • B.Eng. in Automotive Engineering
Thai-Nichi Institute of Technology (TNI) • B.Eng. in Automotive Engineering
B.Eng. Program in Automotive Engineering in Private University
Role of Higher Education in Thailand’s Automotive Industry
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Siam University • B.Ind. in Automotive Technology (2
years program)
Siam Institute of Technology • B.Tech. in Automotive Technology
Mahachai Institute of Automotive Technology • B.Tech. in Automotive Engineering
Rajabha Rajangarindra University • B.Sc. in Automotive Mechanical
Engineering
Non-B.Eng. Program in Automotive Technology
Role of Higher Education in Thailand’s Automotive Industry
20
KMITL (Joint with KMUTT) • M.Eng. in Automotive Engineering • (under Thailand Advanced Institute of
Science and Technology and Tokyo Institute of Technology, TAIST-Tokyo Tech Program)
KMUTT (Joint with KMITL) • M.Eng. in Automotive Engineering • (under Thailand Advanced Institute of
Science and Technology and Tokyo Institute of Technology, TAIST-Tokyo Tech Program)
KMUTNB • M.Eng. in Mechanical and Automotive Engineering
(under The Sirindhorn International Thai-German Graduate School of Engineering, TGGS)
Graduate Program in Automotive Engineering
Role of Higher Education in Thailand’s Automotive Industry
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Current
• Supply engineers to support the industry.
• Provide technical and policy consultation.
• Collaborate with manufacturers in research and development.
More Requirements
• Provide advanced technical training to the industry.
• Collaborate with OEM and supplier to design or develop the vehicle and auto parts.
Industry shifted from
Production base
To
Production and R&D
base
Conclusion
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• Thailand is one of major automotive production base in the region.
• In the medium to long term, Thailand’s automotive industry will actively participate in Design, Research and Development.
• A large number of mechanical and automotive engineers is required to sustain the growth of the industry.
• Higher education institutes will not only provide the workforce to the industry, but also actively establishing joint research programs with the manufacturers of all levels.
Thank you Yossapong Laoonual, PhD
Email: [email protected]
Special Thanks to Dr. Kitchanon Ruangjirakit, Department of Mechanical Engineering, KMUTT for helping in PowerPoint preparation.
Baden-Württemberg Forum Bangkok, 28th April 2014, BITEC Bangkok, Thailand
