Toyota's Thai plant to buy all parts in Southest Asia

Toyota's Thai plant to buy all parts in Southest Asia

TOKYO (DPA): Japan's Toyota Motor Corporation said on Friday its Thai plant will try to procure all parts in Southeast Asia by 2003 thanks to planned reductions of tariffs by the Association of Southeast Asian Nations (ASEAN) in 2002.

A Toyota spokeswoman in Tokyo said the company plans to procure as many parts as possible from the region in order to compete with other carmakers in Thailand as well as diminish the effects of foreign currency exchange fluctuations.

Competition in Thai market has been rising due to the presence of big carmakers such as General Motors and DaimlerChrysler, which have started production in Thailand.

According to Toyota, its market share in Thailand was 35 per cent in 1999. But its Thai market share fell just below 30 per cent in the January-July period of this year.

Increasing the amount of procurement in Southeast Asia will help Toyota cut costs. Currently, the Japanese carmaker pays 33 per cent of tariff to Thai government when the company imports auto parts to Thailand.

Analysts said other big carmakers will also expand their procurements of parts in the region in order to cut costs and avoid currency losses.