(Chugoku region) Mission Dispatch Program: Research of Automotive Industory in INDIA & THAILAND (FY2010)
The production and export of compact cars are expanding rapidly in many newly emerging economies, especially in Asia. There are also moves toward the production of eco-cars to be exported to Japan, leading to more intensified competition with auto parts manufacturers in Japan. Against this background, IIST dispatched a mission consisting of representatives from automotive-related industries, universities, local governments, and industry support organizations in the Chugoku region to India and Thailand.
Dates: November 7 (Sunday)-17 (Wednesday), 2010 Organized by:Institute for International Studies and Training (IIST); Chugoku Bureau of Economy, Trade and Industry
Dispatched experts (The mission consisted of a total of 16 persons: the following three dispatched experts and 13 other participants.)
Mr. Fujio IWAKI
Director, Center for the Advancement of Car Electronics, Hiroshima Industrial Promotion Organization
Mr. Toshifumi YASUDA
General Manager, Design Dept., Development Div., Daikyo Nishikawa Corporation
Mr. Masao TATSUZAWA
Specialist, Automotive Industry Market
-NSK-ABC Bearings Ltd.
-Tata Consultancy Services (TCS), Chennai Office
-Yazaki Wiring Technologies India
-Renault-Nissan Alliance - Chennai Plant
-Tata Motors - Pune Plant
-Embassy of Japan in India
-Maruti Suzuki - Gurgaon Plant
-Jay Bharat Maruti Ltd.
-Denso Haryana - Gurgaon Plant
-Department of Industrial Promotion, Ministry of Industry, Thailand
-Automotive Cluster Exchange Forum
-Daikyo Nishikawa (Thailand) Co.
The survey was implemented in three cities in India where the automotive industry is concentrated (Chennai, New Delhi, and Pune) and mainly in Rayong Province near Bangkok in Thailand. In India, the mission visited the following companies: NSK-ABC Bearings, Tata Consultancy Services (TCS), Yazaki Wiring Technologies, Renault-Nissan Alliance, Tata Motors, Maruti Suzuki, and Denso. In addition to obtaining information from the Embassy of Japan in India and JETRO , the mission members also engaged in discussions with local suppliers at an exchange meeting organized by the Automotive Component Manufacturers Association of India (ACMA). In Thailand, through discussions with the Department of Industrial Promotion of the Thai Ministry of Industry and the âAutomotive Cluster Exchange Forumâ, the mission obtained information regarding the automotive business environment and conditions, including the eco-car project by the Thai government and auto-related companies. In addition, the mission visited AutoAlliance (Thailand)Co.,Ltd. (ATT), which is a joint venture of Mazda and Ford, and Daikyo Nishikawa (Thailand) Co.,Ltd.
Regarding automobile production in India, further growth is expected both in domestic demand and in export-bound production, and it was pointed out that the timely development of parts suited to local needs is important for business expansion. In Thailand, meanwhile, the government aims to build an export base for environment-friendly compact cars, and it is introducing incentives not only for the production of eco-cars and next-generation vehicles but also for the production of related parts. This could be an important factor when Japanese companies consider overseas business development. Mission members commented that when Japanese parts suppliers enter India or Thailand, it is ideal and necessary for them, like the Toyota Group case, to obtain support from automobile manufacturers as regards to personnel and general affairs at the local operation, develop human resources for overseas operations, and so on. The results of the survey would be referred to in the preparation of a regional strategy.
International Exchange Dept.