Automakers Seek Closer - JAMA

2

New vehicle sales in the ASEAN market (Indonesia, Malaysia, the Philippines, Singapore and Thailand) in 2005 totalled 2 million units, a 14 percent increase over the previous year, further demonstrating that ASEAN is one of the world’s fastest growing automobile markets. Considering also the rapid motorization in China and India, there is no doubt that Asia, including the ASEAN region, is the growth center of the worldwide automobile market and in the global spotlight.

This booklet describes the activities of Japanese automakers in the ASEAN region in recent years. The latest available data indicates that in 2005, member companies of the Japan Automobile Manufacturers Association (JAMA) and their local partners produced 2,027,123 motor vehicles in and exported 405,511 units from ASEAN countries. The direct employment generated by these activities created jobs for over 86,000 people within ASEAN.

The partnership between the ASEAN and

Japanese motor industries dates back more than forty years. That long period saw times of economic difficulty, including the Asian currency crisis, but over those many years the Japanese automobile industry steadily invested in the ASEAN region, expanding vehicle production, sales and employment there.

For ASEAN auto industry players, the speed of economic development in ASEAN’s competitor countries and the speed of response to changes taking place within the industry are crucial factors to take into account. The pace of such development and change underscores the fact that timely action is critical for the ASEAN auto industry, particularly in view of ASEAN integration through AFTA and the trend to establish economic partnership agreements (EPAs). The Japanese automobile industry would like to strengthen its ties with the industry in ASEAN so that this partnership can take a leading global role in automotive production in the years ahead.

Automakers Seek CloserASEAN-Japan Cooperation

for the Years Ahead

F o r e w o r d

3

C o n t e n t s

Foreword 2

Contents 3

2005 Production Facilities in ASEAN 4

Steady Growth in Production in ASEANExport Expansion in ASEAN 9

JAMA's Activities in ASEAN 10

The History of Japanese Automakers in ASEAN 14

B

Mak

assa

r St

r.

J a w a S e a

Sumatera

.

Jawa

Sulawesi

Bali

Lombo

k

Sumba

wa

Sumba

Flore

s

L e s s e r S u n d a I s .

Gr e a t e r S u n d a I s .

Borneo(Kalimantan)

CelebesSea

Belitung

Bangka

INDONESIABandung

Surabaya

Denpasar

Semarang

Yogyakarta

Kuala Lumpur

Ujung Pandang(Makassar)

Medan

Padang

Kuantan

Johor Bahru

Samarinda

Balikpapan

Manado

Banjarmasin

SINGAPORE

4

4,862

315

2,810

428

330

1,176

280

280

103

3,756

3,895

869

175

362

893

1992

2003

1977

1974

1972

1973

2001

1996

1990

1971

2002

1983

1997

1973

Taruna, Zebra, F, Ceria, Xenia, Toyota Avanza, engines

medium & heavy-duty trucks and buses

Civic, CR-V, Stream, Jazz

Panther, Elf, F-series

Galant, Kuda

Colt T-120SS, Colt L300

Canter, Fuso

Terrano, X-trail, Serena

trucks and buses

Baleno, Carry, Futura, Jimny, Escudo, Karimun, Aerio, APV

Kijang Innova, Kijang P/U, engines

automatic transmissions, engine valves

engines

casting parts

engines, body parts

104,418 units

5,092 units

40,380 units

24,178 units

2,160 units(*1)

44,064 units

39,079 units

11,247 units

1,926 units

104,133 units

98,257 units(*4)

232,831 units(*5)

172,169 units(*6)

7,533,174 units(*7)

27,078 units

119,033 units(*8)

22,225 units(*9)

47,232 units

39,633 units

Daihatsu

Hino

Honda

Isuzu

Mitsubishi

Mitsubishi

Mitsubishi Fuso

Nissan

Nissan Diesel

Suzuki

Toyota

Honda

Isuzu

Isuzu

Mitsubishi

Mitsubishi Fuso

P. T. Astra Daihatsu Motor

P. T. Hino Motors Manufacturing Indonesia

P. T. Honda Prospect Motor

P. T. Pantja Motor

P. T. Krama Yudha Kesuma Motors (KKM)

P. T. Krama Yudha Ratu Motor (KRM)

P. T. Nissan Motor Indonesia

P. T. Astra Nissan Diesel Indonesia

P. T. Indomobil Suzuki International

P. T. Toyota Motor Manufacturing Indonesia

P. T. Honda Precision Parts Manufacturing

P. T. Mesin Isuzu Indonesia

P. T. Asian Isuzu Casting Center

P. T. Mitsubishi Krama Yudha Motors & Manufacturing (MKM)

■AUTOMOBILE PRODUCTION COMPANIES　　●COMPONENTS MANUFACTURING COMPANIES

12

13

14

15

16

1

10

11

9

8

7

6

5

4

2

3

RP 338.85 billion

US$ 47.8 million

US$ 70 million

RP 92 billion

RP 1,500 million

RP 12,000 million

US$ 56 million

RP 62.84 billion

US$ 45 million

RP 19.5 billion

US$ 64 million

RP 13 billion

RP 107 billion

RP 11,451 million

68.13%

90%

51%

12.5%

0%(*2)

0%(*3)

83.3%

12.5%

90%

95%

100%

38.2%

77.5%

32.3%

0%

Established EmployeesProductionCompany Capital InvestmentAutomaker Products Headquarter’s Stake

2005 Production Facilitiesin ASEAN

I n d o n e s i a

(*1) KKM ended its production in September 2005. (*2) Technology Tie-up (*3) Assembly Consignment (*4) CBU (*5) engines (*6) automatic transmissions (*7) engine valves (*8) cylinder blocks (*9) cylinder heads

13

122

143 KarawangKarawang

BekasiBekasi

Bukit IndahBukit Indah

JakartaJakarta15 16

1 54 61110987

Jakarta

Rawang Pekan

Shah Alam

Melaka

Johor Bahru

Kuala LumpurPetaling Jaya

arStr. of M

alacca

Sumatera

Ma

l ay

Pe

n.

Borneo(Kalimantan)

Gulf ofThailand

Palawan

BRUNEI

MALAYSIABandar Seri Begawan

Sandakan

Nha TrangPhnom Penh

Ho Chi Minh(Saigon)

Can Tho

Rach Gia

Sihanoukville

Medan

Phuket

George Town(Penang)

Ipoh

Songkhla

Kota Bharu

Kuantan

Kuala Lumpur

5

M a l a y s i a

1

8

9

10

7

6

5

4

2

3

Established EmployeesProductionCompany Capital InvestmentAutomaker Products Headquarter’s Stake

Delta, Hijet maxx

Kancil, Kelisa, Kenari, Rusa, Kembara, Myvi

Dutro, Validus, buses

Accord, Civic, City, CR-V

TF, UBS, N*R, F*R, CXZ

Saga, Wira, Satria, Putra, Perdana, Arena

Canter, Fuso

Sentra, Cefiro, Vanette, Serena, X-trail, Frontier

trucks and buses

Camry, Corolla, Hiace, Hilux, Vios, Innova, Fortuner, engines

engines

bumpers, instrument panels, others

597

7,066

80

1,423

940

11,000

1,300(*2)

1,140

3,236

870

134

1980

1993

1989

2000

1997

1983

2005

1974

1968

1996

1992

5,587 units

180,578 units

2,141 units

22,740 units

3,192 units

187,512 units

988 units

28,437 units

2,418 units

54,684 units 10,483 units(*3)

---

236,200 units(*6)

190,800 units(*7)

Daihatsu

Daihatsu

Hino

Honda

Isuzu

Mitsubishi

Mitsubishi Fuso

Nissan

Nissan Diesel

Toyota

Daihatsu

Honda

Daihatsu Malaysia Sdn. Bhd.

Perodua Manufacturing Sdn. Bhd.

Hino Motors (Malaysia) Sdn. Bhd.

Honda Malaysia Sdn. Bhd.

Malaysian Truck and Bus Sdn. Bhd.

Perusahaan Otomobile Nasional Sdn. Berhad (Proton)

DaimlerChrysler Malaysia Sdn. Bhd.

Tan Chong Motor Assemblies Sdn. Bhd.

Assembly Services Sdn. Bhd.

Perodua Engine Manufacturing Sdn. Bhd.

Honda Autoparts Manufacturing (M) Sdn. Bhd.


RM 20 million

RM 140 million

RM 15 million

RM 98 million

RM 100 million

RM 549.2 million

RM 134.7 million

RM 1 million

RM 7.5 million

RM 40 million

RM 25.8 million

28.5%

26% (*1)

58%

51%

20%

0%

0%

0%

0% (*4)

26% (*5)

51%

Malaysia

Indonesia

(*1)(*5) Perodua Manufacturing Sdn. Bhd. and Perodua Engine Manufacturing Sdn. Bhd. are 51% owned by PCSB (Perodua Auto Corporation Sdn. Bhd.), a holding company in which Daihatsu acquired a 51% equity stake.(*2) Number of employees represents figures for Malaysian Truck & Bus (MTB), which consigns for production in Malaysia (including passenger cars, other company’s products).(*3) engines (*4) Assembly Services Sdn. Bhd. is 100% owned by UMWT (United Motor Works Toyota), an affiliate company in which Toyota acquired a 50% equity stake. (*6) bumpers (*7) instrument panels and others

12

11

Karawang

Bekasi

Bukit Indah

JakartaRawangRawang PekanPekan

Shah AlamShah Alam

MelakaMelaka

Johor BahruJohor Bahru

10

4

3

2 11

12

8 Kuala LumpurKuala Lumpur97

1 6

5

Petaling JayaPetaling Jaya

Mindanao

Luzon

South ChinaSea

SuluSea

Phil ippineSea

Palawan

P

Babuyan Is.

Samar

Leyte

Panay

Negros

Mindoro

BRUNEI

CebuBacolod

Iloilo

Baguio

DavaoZamboanga

Sandakan

PHILIPPINES

Manila

6

Th e P h i l i p p i n e s

158

676

661

704

309

363

80

1,287

349

475

485

580

1975

1990

1995

1963

1954

1982

1981

1989

1992

1996

1973

1990

258 units

7,440 units

9,170 units

10,306 units

411 units

2,771 units

5,103 units

250 units

17,826 units

80,738 units

189,157 units

404,035 units

220,731 units(*3)

Hino

Honda

Isuzu

Mitsubishi

Mitsubishi Fuso

Nissan

Nissan Diesel

Toyota

Honda

Isuzu

Mitsubishi

Toyota


P 187.5 million

P 770 million

P 1,000 million

P 1,640 million

P 154 million

P 1,845 million

P 1,570 million

P 2,423 million

P 810.8 million

P 442 million

P 350 million

P 1,000 million

14.9%

54%

35%

51%

0%

0% (*1)

5.36%

1.6%

34%

100%

0% (*2)

5%

95%

trucks and buses for Category IV-V

Civic, City, CR-V

Alterra, Crosswind, D-max, N-series, F-series, buses

Pajero, L300, Adventure

Canter, Fuso

Datsun, Safari, Terrano, Caravan

Sunny, Cefiro, X-trail

trucks and buses

Camry, Corolla, Innova

manual transmissions

transmissions

transmissions, engines, axles

transmissions, constant velocity joints

Pilipinas Hino Inc.

Honda Cars Philippines Inc.

Isuzu Philippines Corporation

Mitsubishi Motors PhilippinesCorporation (MMPC)

Universal Motors Corporation

Nissan Motor Philippines Inc.

Columbian Motors Corporation

Toyota Motor Philippines Corp.

Honda Parts Manufacturing Corp.

Isuzu Autoparts Manufacturing Corporation

Asian Transmission Corporation (ATC)

Toyota Autoparts Philippines Inc.


CompanyAutomaker Products

1

8

9

7

6

5

4

2

3

13

10

11

12

(*1) Technology Tie-up (*2) Isuzu Autoparts Manufacturing Corporation is 100% owned by IMA (Isuzu Motors Asia) Ltd., an affiliate company in which Isuzu acquired a 100% equity stake. (*3) transmissions

Established EmployeesProduction Capital Investment Headquarter’s Stake

6 4

1

8

93 711 12 13

210

Metro ManilaMetro Manila

LagunaLaguna

5 RizalRizal

Santa RosaSanta RosaBinanBinan

MaktiMakti

CanlubangCanlubang

BangkokPathumthani

Ayutthaya

Chonburi

Rayong

Samutprakarn

Samrong-Tai Gateway

Mekong

Ma

l ay

Pe

n

Hainan

Gulf ofThailand

Gulf ofTongking

Gulf ofMartaban

South ChinaSea

AndamanSeaA

ndam

an I

s.

Nicobar Is.

Palawan

Tonle Sap

BRUNEI

Haikou

Sandakan

Da Nang

Qui Nhon

Nha Trang

HueUdon Thani

NakhonRatchasima

UbonRatchathani

(Rangoon)Yangon

Phnom Penh

Chiang MaiLuang Prabang

TakMoulmein

Ho Chi Minh(Saigon)

Can ThoRach Gia

Sihanoukville

Banda Aceh

Phuket

George Town(Penang)

Ipoh

Songkhla

Kota Bharu

Vientiane

VIETNAM

LAOS

CAMBODIA

THAILAND

MYANMAR(BURMA)

Bangkok

7

T h a i l a n d

3,0663,7453,4732,978

4,074

205

1,515

1845,9091,019

250

241

328

2,256

2003198319661995

1987

2004

19731962198719621987

1996

1987

1989

1987

7,997 units104,660 units185,711 units109,608 units

159,214 units

2,194 units

44,022 units

1,374 units366,935 units216,198 units

5,510,284 units

45,021 units21,163 units (*2)

26,404 units (*3)

---

403,873 units (*4)


Bht. 2,000 millionBht. 5,460 millionBht. 8,500 millionBht. 5,000 million

Bht. 7,000 million

Bht. 500 million

Bht. 1,930.91 millionBht. 13.33 millionBht. 1,896 millionBht. 7,520 millionBht. 1,025 million

Bht. 617 million

Bht. 1,400 million

Bht. 135 million

Bht. 850 million

80%91.5%6.7%45%

99.79%

100%

75%75%0%

86.4%1.4%

25%

35%

27.8%

96%

medium & heavy-duty trucks and busesAccord, Civic, City, CR-V, Jazzpick-ups, N-series, F-seriesMazda B-Series, Ford Ranger, Everest

Lancer, Strada, Space Wagon, Triton

Canter, Fuso

Frontier, WingroadTiana, Sunnytrucks and busesCamry, Corolla, Vios, Wish, Hilux Vigo, Fortuner, enginesdiesel enginesknuckle spindles, knuckle arms, rear axleshafts, forging parts for automobileengine unit (assembly)

engine parts machining (cylinder blocks, cylinder heads)

Design/manufacturing of stamping die and body ass'y jig for autobody. Parts production of stamping and sub-ass'y using above-mentioned dies and jigs.diesel/gasoline engines, propellar shifts, casting (blocks, heads)

HinoHondaIsuzuMazda

Mitsubishi

Mitsubishi Fuso

Nissan

Nissan DieselToyotaIsuzu

Nissan

Nissan

Toyota

Hino Motor Manufacturing (Thailand) Ltd.Honda Automobile (Thailand) Co., Ltd.Isuzu Motors Co., (Thailand) Ltd.AutoAlliance (Thailand) Co., Ltd.Mitsubishi Motors (Thailand) Co.,Ltd.(MMTh)Mitsubishi Fuso Truck (Thailand) Co., Ltd. (MFTT)Siam Nissan Automobile Co., Ltd.Siam Motors & Nissan Co., Ltd.Nissan Diesel (Thailand) Co., Ltd.Toyota Motor Thailand Co., Ltd.Isuzu Engine Manufacturing Co., (Thailand) Ltd.

Siam Metal Technology Co., Ltd.

Nissan Powertrain (Thailand) Co., Ltd. (*1)

SNN Tools & Dies Co., Ltd.

Siam Toyota Manufacturing Co., Ltd.


1

7

8

9

6

5

4

2

3

10

11

12

13

ThePhilippines

Thailand


(*1)Thai Automotive Industry Co., Ltd. became Nissan Powertrain (Thailand) Co., Ltd. in December 2004. (*2) cylinder blocks (*3) cylinder heads (*4) diesel/gasoline engines

Metro Manila

Laguna

Rizal

Santa RosaBinan

Makti

Canlubang

2

10

65

4

13

37112

11

BangkokBangkokPathumthaniPathumthani

AyutthayaAyutthaya

ChonburiChonburi

RayongRayong

SamutprakarnSamutprakarn

Samrong-TaiSamrong-Tai 98

GatewayGateway9

Mekong

Hainan

Gulf ofThailand

Gulf ofTongking

Gulf ofMartaban

South ChinaSea

AndamanSea

Palawan

B

Hong Kong

Haikou

KLao Cai

Da Nang

Qui Nhon

Hue

Udon Thani

NakhonRatchasima

(Rangoon)Yangon

Phnom Penh

Bangkok

Moulmein

Can Tho

Mandalay

VIETNAM

LAOS

CAMBODIA

THAILAND

MYANMAR(BURMA)

Mekong

Salween

Irrawaddy

HainanBay ofBengal

Gulf ofTongking

Gulf ofMartaban

INDIA

Haikou

Nanning

Ha NoiHai Phong

Lao Cai

Da Nang

HueUdon Thani

UbonRatchathani

Chiang MaiLuang Prabang

TakMoulmein

Kunming

Vientiane

CHINA

LAOS

THAILAND

MYANMAR(BURMA)

8

331998 266 unitsSuzuki

■AUTOMOBILE PRODUCTION COMPANY

■AUTOMOBILE PRODUCTION COMPANIES

(*1) Technology Tie-up

US$ 6.7 million 60%Carry, Wagon R+Myanmar Suzuki Motor Co., Ltd.

132

48

265

634

330

337

559

1995

1996

1995

1991

1995

1995

1995

581 units

661 units

2,799 units

697 units

5,005 units

1,211 units

4,053 units

13,168 units

Daihatsu

Hino

Isuzu

Mazda

Mitsubishi

Mitsubishi Fuso

Suzuki

Toyota

US$ 12.3 million

US$ 8.11 million

US$ 15 million

US$ 13.35 million

US$ 16 millon

US$ 18.5 million

US$ 49.14 million

26%

51%

35%

0%（*1）

25%

0%

35%

70%

Hijet, Citivan, Terios

medium & heavy-duty trucks and buses

N-series, Trooper, Hi-Lander

Mazda3, Mazda6, Premacy

Lancer, Pajero, Jolie, Grandis

Canter

Carry, Wagon R+, Vitara

Camry, Corolla, Hiace, Land Cruiser, Innova, Vios

Vietindo Daihatsu Automotive Corporation

Hino Motors Vietnam, Ltd.

Isuzu Vietnam Co., Ltd.

Vietnam Motors Corporation

Vina Star Motors Corporation (VSM)

Vietnam Suzuki Corp.

Toyota Motor Vietnam Co., Ltd.


1

1

8

7

6

5

4

2

3



V i e t n a m

M y a n m a r

Vietnam

Myanmar



1

8

7

42

653

SocsonSocsonHanoiHanoi

Me LinhMe Linh

Bien HoaBien HoaHo Chi Minh CityHo Chi Minh City

1 YangonYangon

9

There has been a steady growth in production by JAMA member companies and their local partners over the past eight years. Production of passenger cars, trucks and buses in ASEAN in 2005 totalled 2 million units including export units, marking close to a 16% increase over the previous year.

Steady Growth in Productionin ASEAN

Exports, including intra-ASEAN exports, registered the largest increase. Exports of motor vehicles produced in ASEAN by JAMA member companies and their local partners surged in 2005 to over 405,000 units, a 53.6% increase over the previous year.

Export Expansionin ASEAN

0

50,000

100,000

150,000

200,000

250,000

450,000

400,000

350,000

300,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 20052004

Units Exported

Units Produced

19940

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,600,000

1,400,000

2,200,000

2,000,000

1,800,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 20052004

ASEAN Total

SocsonHanoi

Me Linh

Bien HoaHo Chi Minh City

Yangon

10

JAMA's Activities in ASEAN

Further progress was made in 2005 in the discussions and negotiations on economic partnership agreements (EPAs) between Japan and ASEAN countries. JAMA supports the establishment of EPAs to complement multilateral trade, enhance investment and market liberalization, and expand markets in the countries concerned. In 2004-2005 Japan reached basic agreements—also covering the automotive sector—on EPA creation with Malaysia, the Philippines, and Thailand. EPA negotiations were also launched with Indonesia and ASEAN itself. In addition to increasing market access between/among the countries involved, these agreements are expected to further enhance the competitiveness of those countries’ automotive industries and lay the groundwork for a win-win relationship for all.

Bilateral and Multilateral Economic Partnerships with ASEAN Countries

The 8th AMEICC WGAI Meeting

The AMEICC (AEM-METI(*1) Economic and Industrial Cooperation Committee) Working Group on the Automobile Industry, or WGAI, was set up in 1998 and meets annually to examine and discuss automotive sector issues in the context of ASEAN economic and industrial cooperation. Its 8th meeting was held in May 2005 in Kuching (Malaysia) and featured a keynote address by JAMA Chairman Itaru Koeda, in which he emphasized that “speed” was a critical factor in automotive market integration in ASEAN to prevent it from being left behind by the worldwide automobile industry. Mr Koeda also stressed the need to expedite tariff reduction, mutual complementation and the removal of non-tariff barriers in the auto sector through EPAs. The meeting reported on and discussed the current status of harmonization of automotive technical regulations, fuel quality, the Experts Dispatch Program, cooperation initiatives for CMLV(*2) and other cooperation projects.(*1) ASEAN Economic Ministers-Ministry of Economy, Trade and Industry (Japan) Consultations

(*2) Cambodia, Myanmar, Laos, Vietnam

11

The Experts Dispatch Program for ASEAN’s Auto-Supporting Industries

The Experts Dispatch Program was launched in 2000 as an AMEICC-WGAI industrial cooperation initiative to dispatch Japanese automotive technical experts to Indonesia, Malaysia, the Philippines and Thailand to provide guidance to local parts suppliers in such areas as quality control and productivity enhancement. Positive feedback has led to the extension of the Experts Dispatch Program through September 2006—that is, through the completion of Phase 3 of the program, during which, thanks to a JODC (Japan Overseas Development Corporation) scheme, local parts suppliers are receiving hands-on training in the total management of kaizen activities. The program has been enhanced by a greater number of visits to automakers’ and parts makers’ plant facilities and more active dialogue with top management at the companies involved. Trainees can thereby acquire not only technical skills but also problem-solving skills, all of which should help generate independent self-improvement activities in the individual countries concerned. The success of the Experts Dispatch Program raises further expectations for the increased global competitiveness of the automotive industry in ASEAN countries.

The Experts Dispatch Program: Phase 1 (April 2001～March 2003) and Phase 2 (October 2003～September 2005)

Number of Companies Visited(incl. multiple visits to a company)Phase Number of Experts Dispatched

(incl. 1 coordinator per country)

25

32

45

58

42

36

110

90

1

2

1

2

1

2

1

2

20

25

20

20

19

11

33

31

Indonesia

Malaysia

The Philippines

Thailand

12

The 10th Asian Regulation & Certification Experts (RACE) Meeting

JAMA's Activities in ASEAN

The JAMA-AAF Meeting

At the 5th AAF/TC3(*3)-JAMA Meeting held in April 2005 in Singapore, the AAF/TC3 chairman announced that TC3 had been officially designated by the ASEAN Economic Ministers as one of the implementing bodies assigned the task of harmonizing ASEAN countries’ automotive fuel and safety standards on the basis of the UN/ECE Regulations. Also at that meeting, JAMA technical experts provided (1) guidelines for the adoption of the UN/ECE Regulations; (2) advice on certification procedures following the adoption of those regulations; (3) recommendations on EURO2 fuel specifications; and (4) suggestions concerning an appropriate stance on the use of bio-fuel. Furthermore, TC3 invited JAMA to draft a proposal for AAF fuel specifications based on EURO4 fuel specifications, to be presented at the 6th AAF/TC3-JAMA Meeting in 2006.(*3) ASEAN Automotive Federation/Technical Committee 3

JAMA was the host of the 10th Asian RACE Meeting which took place in November 2005 in Kuala Lumpur, one day ahead of the JASIC/Asia Government and Industry Meeting also held there. In addition to the industry participants from India, Indonesia, Japan, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam, the meeting saw the first-time-ever participation of the ASEAN Secretariat.

Delegates from Thailand, Malaysia and India announced at the meeting that their respective countries would accede to the UN/ECE 1958 Agreement and/or the 1998 Global Agreement. JAMA experts highlighted the difficulties of harmonization activities in Asia and provided advice on the adoption of the UN/ECE Regulations from the standpoint of the 1958 Agreement. Participants concurred that there would be obstacles to technical s tandards harmonization in Asia if the UN/ECE Regulations were not adopted, and they concluded that such harmonization would be best served by close cooperation between the relevant government authorities (namely, the ministries in charge of the automotive sector and transport) and the national auto manufacturer associations.

13

Fuel Seminars

To promote greater recognition of the fact that, even with engine upgrades, better air quality will not be achieved in ASEAN countries without improving automotive fuel quality, fuel seminars were held in the Philippines and Indonesia on 25 and 28 January 2005, respectively, co-organized by JAMA, the Japan Automobile Research Institute (JARI), METI, the Japan Petroleum Energy Center (JPEC) and local auto industry associations. Another fuel seminar was held in Vietnam on 31 January, co-organized by JAMA, JARI, the Vietnam Directorate for Standards and Quality (STAMEQ) and the Vietnam Automobile Manufacturers Association (VAMA).

In those seminars JAMA fuel experts outlined for participants—in terms of fuel specifications, vehicle emissions performance, environmental impact and national policy—the background to Japan’s use of improved automotive fuels. They also explained the specific relationship between fuel quality and automotive emissions control technologies.

The common conclusion at the seminars in the Philippines, Indonesia and Vietnam was that combined efforts on the part of government and industry would be crucial to improving fuel quality in those countries.

With ASEAN’s auto industry associations expanding their efforts in the organization of motor shows in the region, JAMA is extending its cooperation by sharing its organizational know-how based on long experience with the Tokyo Motor Show and by dispatching speakers to symposiums held in conjunction with those shows. JAMA contributed to such an event in April 2005 at the 26th Bangkok International Motor Show by arranging for a speaker from Intelligent Transport Systems Japan to talk about the application of ITS technology to road safety and transport demand management, in Japan and worldwide; and for a delegate from METI to discuss the provisions and enforcement of Japan’s automobile recycling law. JAMA also sent its own representative to the GAIKINDO (Association of Indonesian Automotive Industries) International Automotive Conference at its Auto Expo 2005 in Jakarta in July to speak about “leveraging strategies,” in which it was stressed that public and private sector cooperation—and also the cooperation of all road users—is necessary in order to achieve increased road safety and greater environmental protection and thus to ensure sustainable mobility. These various talks were intended to address some of the most urgent concerns in ASEAN’s automotive sector and promote a better understanding of the issues involved.

Cooperation in the Organization of Motor Shows

14

Daihatsu starts production of the Hijet at Vietindo

Daihatsu Automotive Corporation, its joint venture

company in Vietnam.

Hino establishes Hino Motors Vietnam, Ltd. in

Vietnam.

Aggregate motorcycle production at Honda in both

Indonesia and Thailand reaches 5 million units.

Isuzu establishes Isuzu Motors Asia Ltd. in

Singapore as its regional administration and support

center.

Nissan Diesel establishes a joint venture company

for truck and bus production with P. T. Astra Nissan

Diesel Indonesia (Jakarta) in Indonesia.

Suzuki starts automobile and motorcycle production

at Vietnam Suzuki Corp. Ltd. in Vietnam.

Toyota starts production at Toyota Motors Vietnam

Co., Ltd. in Vietnam.

Aggregate automobile production at MMC Sittipol

Co., Ltd. of Mitsubishi in Thailand reaches

1 million units.

Nissan opens Siam Nissan Casting Co., Ltd., its

production base for cast engine parts in Thailand.

Nissan starts production at a new factory of Nissan

Motor Philippines Inc. (NMPI), its production and

sales base.

Daihatsu increases capital investment in P. T. Astra

Daihatsu Motor in Indonesia.

Honda starts exporting the Thai-made Accord

following the City in 1997.

Mitsubishi constructs a new plant of Asian

Transmission Corporation in the Philippines.

Suzuki concludes a joint venture contract for

motorcycle and automobile production with

Myanmar Suzuki Co., Ltd.

Toyota starts exporting its models made in

Thailand.

Hino integrates its two affiliates in Thailand, Thai

Hino Motor Sales, Ltd. and Thai Hino Industry Co.,

Ltd., into the newly created Hino Motors (Thailand)

Ltd., investing capital of 713 million bahts.

Independent automobile distributorship in the

Philippines becomes Suzuki Philippines Inc., a

wholly-owned local subsidiary selling passenger

cars and commercial vehicles.

Daihatsu establishes Perodua Auto Corporation

Sdn. Bhd. in Malaysia.

Honda achieves an aggregate production level of

10 million units for motorcycles, automobiles and

power equipment in Thailand.

Nissan increases capital investment in P. T. Ismac

Nissan Manufacturing in Indonesia, with a name

change to P. T. Nissan Motor Indonesia (NMI), and

integrated production and sales operations.

Subaru starts sales of its models through GM Auto

World in the Philippines.

Subaru starts sales of its models through GM Auto

World in Indonesia.

Toyota establishes Toyota Motor Asia Pacific Pte.

Ltd. in Singapore.

Daihatsu increases capital investment in P. T. Astra

Daihatsu Motor in Indonesia.

Honda begins exporting the Thai-made Fit Aria to

Japan.

Honda constructs a new plant for automobile

production in the Karawang district in Indonesia.

Suzuki holds a capital majority in P. T. Indomobil

Suzuki International in Indonesia.

Hino (Indonesia) establishes a new sales company,

P. T. Hino Motors Sales Indonesia, in April to take

over sales operations from P. T. Hino Indonesia

Manufacturing, which previously handled both

manufacturing and sales and which then becomes,

also in April, P. T. Hino Motors Manufacturing

Indonesia (HMMI).

Hino (Thailand) establishes a new company, Hino

Motor Manufacturing (Thailand) Ltd. (HMMT), in

June as a separate manufacturing division of Hino

Motors Thailand Ltd. (HMT), which previously

handled manufacturing and sales. In July, HMT

becomes Hino Motors Sales (Thailand) Ltd. (HMST).

Hino obtains permission under the AICO scheme in

September to begin a mutual industrial complementation

arrangement between Thailand and Malaysia, as a

result of the abolition of the nationalized

production law in Thailand in January 2001.

Honda opens a new automobile production factory

in Pegoh, Malaysia. This factory also produces and

exports constant velocity joints to Asia.

1996

1997

1998

1999

2001

2002

2003

The History of Japanese Automakers in ASEAN

15

Honda opens a new automobile production factory

in Karawang, Indonesia and starts exporting its

Indonesian-made Stream to Thailand.

Honda opens a new manual transmission plant in

the Philippines and expands its exports to Europe

and North America.

Honda opens a hi-tech automatic transmission plant

in Indonesia and starts exporting to ASEAN

countries and Europe.

Mitsubishi's production and sales arm in Thailand,

MMC Sittipol Co., Ltd., becomes Mitsubishi

Motors (Thailand) Co., Ltd. in order to reinforce

sales and marketing through a common company

name. Mitsubishi also posts aggregate exports of

over 500,000 units for one-ton pickup trucks.

Suzuki establishes Suzuki Automobile (Thailand)

Co., Ltd. as a distributor of automobiles in

Thailand.

Toyota-Astra Motor (TAM) is split into two

companies to handle sales and manufacturing

(TAM for sales, TMMIN for manufacturing).

Toyota establishes Toyota Technical Center Asia

Pacific Thailand Co. Ltd. (TTCAP-TH) in Thailand

as a technical development center in Asia.

Honda opens a new Automobile Technical Training

Center in Thailand in August. The Center

undertakes the training of not only automobile sales

and service personnel in Thailand, but also ASEAN

instructors. It is also open to 3rd party users such

as vocational schools.

A new production and administration company,

Isuzu Motors Co., (Thailand) Ltd., is established in

Thailand in September 2004 by the combination of

its local administration company, Isuzu (Thailand)

Co., Ltd., and its local production company, Isuzu

Motors Co., (Thailand) Ltd. At the moment of the

establishment, Isuzu Motors Co., (Thailand) Ltd.

receives an additional amount of 7 billion bahts to

its capital, which becomes 8.5 billion bahts.

Mitsubishi annual auto export total to Thailand

surpasses 80,000 units, setting new record high.

Mitsubishi announces the new automobile

developed independently by PROTON at Malaysia

in February, and starts sales of it in April.

Mitsubishi spins off local operation in 2004,

establishing Mitsubishi Fuso Truck (Thailand) Co.,

Ltd. (MFTT) as truck/bus specialized production

and sales company in Thailand.

Nissan invests more than 10 billion bahts in Siam

Nissan Automobile Co., Ltd. The number of Siam

Nissan's employees is expected to at least double by

2008 from about 2,000 at present.

Toyota starts exporting the Indonesia-made Avanza

to Thailand.

Toyota launches IMV (Innovative International

Multi-purpose Vehicle) project by starting

production of pick-up trucks and SUVs in Thailand

and mini-vans in Indonesia.

Honda announces to build a new automobile

manufacturing facility within the current

motorcycle plant site to begin its automobile

business in Vietnam after the middle of 2006.

Mitsubishi's new and exclusive sales network in

Malaysia; Mitsubishi Motors Malaysia Sdn. Bhd.,

a joint venture company between Mitsubishi

Corporation and Edaran Otomobil Nasional Berhad

(EON), is established in March 2005, and starts its

sales in July 2005.

Mitsubishi (Thailand) announces that its

automobile export exceeded 700,000 units by

March.

Mitsubishi Fuso transfers its truck and bus

operation in Malaysia to DaimlerChrysler Malaysia

(DCM) from January 1, 2005.

Nissan newly installs Upsetter line (two lines in

total) in Thailand.

Toyota starts production of IMV models in the

Philippines in February and Malaysia in March.

Toyota announces that its production capacity

increases up to approximately 550,000 vehicles

annually and construction of a new plant in

Thailand in April.

Toyota announces that its Karawang plant

production capacity increases up to approximately

100,000 vehicles annually in Indonesia in April.

2003

2004

2004

2005

Head OfficeJidosha Kaikan, Shiba Daimon 1-chome, Minato-kuTokyo, 105-0012 JapanTEL: +81-3-5405-6126 FAX: +81-3-5405-6136URL:http://www.jama.or.jp/

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Automakers Seek Closer - JAMA

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