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.