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Hand-In-Hand 2006

Hand-In-Hand 2006

2006 Foreword

Automakers Seek Closer ASEAN- Cooperation for the Years Ahead

New vehicle sales in the ASEAN market Japanese motor industries dates back more (Indonesia, , the Philippines, than forty years. That long period saw Singapore and Thailand) in 2005 totalled times of economic difficulty, including the 2 million units, a 14 percent increase over Asian currency crisis, but over those many the previous year, further demonstrating years the Japanese automobile industry that ASEAN is one of the world’s fastest steadily invested in the ASEAN region, growing automobile markets. Considering expanding vehicle production, sales and also the rapid motorization in China and employment there. India, there is no doubt that , including the ASEAN region, is the growth center of For ASEAN auto industry players, the the worldwide automobile market and in speed of economic development in the global spotlight. ASEAN’s competitor countries and the speed of response to changes taking place This booklet describes the activities of within the industry are crucial factors to Japanese automakers in the ASEAN region take into account. The pace of such in recent years. The latest available data development and change underscores the indicates that in 2005, member companies fact that timely action is critical for the of the Japan Automobile Manufacturers ASEAN auto industry, particularly in view Association (JAMA) and their local of ASEAN integration through AFTA and partners produced 2,027,123 motor vehicles the trend to establish economic partnership in and exported 405,511 units from agreements (EPAs). The Japanese ASEAN countries. The direct employment automobile industry would like to generated by these activities created jobs strengthen its ties with the industry in for over 86,000 people within ASEAN. ASEAN so that this partnership can take a leading global role in automotive The partnership between the ASEAN and production in the years ahead.

2 Contents

Foreword 2

Contents 3

2005 Production Facilities in ASEAN 4

Steady Growth in Production in ASEAN Export Expansion in ASEAN 9

JAMA's Activities in ASEAN 10

The History of Japanese Automakers in ASEAN 14

3 2005 Production Facilities in ASEAN Indonesia

.

Medan Kuantan Celebes Kuala Lumpur Sea Rawang Pekan 1 4 5 6 7 Jakarta 8 9 10 11 15 16 Johor Bahru Petaling Jaya 13 Bekasi SINGAPORE Manado Kuala Lumpur 3 14 Karawangarawang Borneo Shah Alam Samarinda Padang (Kalimantan) 2 12 Bukit Indah Melaka Sumatera Balikpapan Makassar Str. Bangka Sulawesi Johor Bahru Belitung Banjarmasin

Greater Sunda Is. Jawa Sea Ujung Pandang (Makassar) Jakarta INDONESIA B Jawa Bandung Semarang Surabaya Yogyakarta Bali Lombok Sumbawa Flores Denpasar Lesser Sunda Is.

Sumba

■AUTOMOBILE PRODUCTION COMPANIES ●COMPONENTS MANUFACTURING COMPANIES

Automaker Company Products EstablishedProduction Employees Capital Investment Headquarter’s Stake Tar una, Zebra, F, Ceria, Xenia, 1 P. T. Avanza, engines 1992 104,418 units 4,862 RP 338.85 billion 68.13% 2 Hino P. T. Manufacturing Indonesia medium & heavy-duty and buses 2003 5,092 units 315 US$ 47.8 million 90% 3 P. T. Civic, CR-V, Stream, Jazz 1977 40,380 units 2,810 US$ 70 million 51% 4 P. T. Pantja Motor Panther, Elf, F-series 1974 24,178 units 428 RP 92 billion 12.5% 5 P. T. Krama Yudha Kesuma Motors (KKM) Galant, Kuda 1972 2,160 units(*1) 330 RP 1,500 million 0%(*2) 6 Mitsubishi Colt T-120SS, Colt L300 44,064 units 1,176 P. T. Krama Yudha Ratu Motor (KRM) 1973 RP 12,000 million 0%(*3) 7 , Fuso 39,079 units 280 8 P. T. Terrano, X-trail, Serena 2001 11,247 units 280 US$ 56 million 83.3% 9 Nissan Diesel P. T. Astra Nissan Diesel Indonesia trucks and buses 1996 1,926 units 103 RP 62.84 billion 12.5% Baleno, Carry, Futura, Jimny, Escudo, 10 P. T. Indomobil Suzuki International 1990 104,133 units 3,756 US$ 45 million 90% Karimun, Aerio, APV (*4) 11 Toyota P. T. Toyota Motor Manufacturing Indonesia Kijang Innova, Kijang P/U, engines 1971 98,257 units 3,895 RP 19.5 billion 95% 232,831 units(*5) 172,169 units(*6) 12 Honda P. T. Honda Precision Parts Manufacturing automatic transmissions, engine valves 2002 869 US$ 64 million 100% 7,533,174 units(*7) 13 Isuzu P. T. Mesin Isuzu Indonesia engines 1983 27,078 units 175 RP 13 billion 38.2% (*8) Isuzu casting parts 1997 119,033 units 362 RP 107 billion 14 P. T. Asian Isuzu Casting Center 22,225 units(*9) 77.5% 15 Mitsubishi 47,232 units 32.3% P. T. Mitsubishi Krama Yudha Motors & engines, body parts 1973 893 RP 11,451 million 16 Mitsubishi Fuso Manufacturing (MKM) 39,633 units 0% (*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 4 Malaysia Malaysia Indonesia

Phnom Penh Nha Trang

Ho Chi Minh 2 11 Rawangawang 5 Pekan Jakarta Sihanoukville (Saigon) 3 Rach Gia Petaling Jaya Bekasi Can Tho 7 8 9 Kuala Lumpur Karawang Gulf of 1 6 10 Shah Alam Palawan Thailand Bukit Indah Phuket 4 Melaka MalaySongkhla Pen. 12 Johor Bahru

Kota Bharu Sandakan George Town Str. of Malacca(Penang) BRUNEI Bandar Seri Begawan Ipoh MALAYSIA

Kuantan Medan Kuala Lumpur

Sumatera Borneo (Kalimantan)

ar ■AUTOMOBILE PRODUCTION COMPANIES ●COMPONENTS MANUFACTURING COMPANIES

Headquarter’s Automaker Company Products EstablishedProduction Employees Capital Investment Stake 1 Daihatsu Daihatsu Malaysia Sdn. Bhd. Delta, Hijet maxx 1980 5,587 units 597 RM 20 million 28.5% 2 Daihatsu Manufacturing Sdn. Bhd. Kancil, Kelisa, Kenari, Rusa, Kembara, Myvi 1993 180,578 units 7,066 RM 140 million 26% (*1) 3 Hino Hino Motors (Malaysia) Sdn. Bhd. Dutro, Validus, buses 1989 2,141 units 80 RM 15 million 58% 4 Honda Honda Malaysia Sdn. Bhd. Accord, Civic, City, CR-V 2000 22,740 units 1,423 RM 98 million 51%

5 Isuzu Malaysian and Bus Sdn. Bhd. TF, UBS, N*R, F*R, CXZ 1997 3,192 units 940 RM 100 million 20% Perusahaan Otomobile Nasional Sdn. 6 Mitsubishi Saga, Wira, Satria, Putra, Perdana, Arena 1983 187,512 units 11,000 Berhad (Proton) RM 549.2 million 0% 7 Mitsubishi Fuso DaimlerChrysler Malaysia Sdn. Bhd. Canter, Fuso 2005 988 units 1,300(*2) RM 134.7 million 0%

8 Nissan Sentra, Cefiro, Vanette, Serena, X-trail, 28,437 units Assemblies Sdn. Bhd. Frontier 1974 1,140 RM 1 million 0% 9 Nissan Diesel trucks and buses 2,418 units

54,684 units Toyota Camry, Corolla, Hiace, Hilux, Vios, Innova, RM 7.5 million (*4) 10 Assembly Services Sdn. Bhd. Fortuner, engines 1968 10,483 units(*3) 3,236 0% 11 Daihatsu Perodua Engine Manufacturing Sdn. Bhd. engines 1996 --- 870 RM 40 million 26% (*5) Honda Autoparts Manufacturing (M) 236,200 units(*6) 12 Honda bumpers, instrument panels, others 1992 134 RM 25.8 million 51% Sdn. Bhd. 190,800 units(*7) (*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

5 2005 Production Facilities in ASEAN T he Philippines

Babuyan Is. Ayutthaya 8 Metro Manila Pathumthani Bangkok 6 Makti 4 5 Rizal Baguio Samrong-Tai ateway 1 G Canlubang 10 Binan Samutprakarn 2 Santa Rosa Luzon Chonburi 3 7 9 Philippine Laguna Manila 11 12 13 Sea

Mindoro PHILIPPINES Samar Rayong Panay Iloilo Leyte South China Bacolod Sea Cebu Palawan Negros

Sulu Mindanao Sea Davao Zamboanga P

BRUNEI Sandakan

■AUTOMOBILE PRODUCTION COMPANIES ●COMPONENTS MANUFACTURING COMPANIES

Automaker Company Products EstablishedProduction Employees Capital Investment Headquarter’s Stake 1 Hino Pilipinas Hino Inc. trucks and buses for Category IV-V 1975 258 units 158 P 187.5 million 14.9% 2 Honda Honda Cars Philippines Inc. Civic, City, CR-V 1990 7,440 units 676 P 770 million 54% 3 Isuzu Isuzu Philippines Corporation Alterra, Crosswind, D-max, N-series, F-series, buses 1995 9,170 units 661 P 1,000 million 35% 4 Mitsubishi Pajero, L300, Adventure 10,306 units 51% Philippines 704 P 1,640 million Corporation (MMPC) 1963 5 Mitsubishi Fuso Canter, Fuso 411 units 0%

6 Universal Motors Corporation , Safari, Terrano, Caravan 1954 2,771 units 309 P 154 million 0%(*1) Nissan 7 Nissan Motor Philippines Inc. Sunny, Cefiro, X-trail 1982 5,103 units 363 P 1,845 million 5.36%

8 Nissan Diesel Columbian Motors Corporation trucks and buses 1981 250 units 80 P 1,570 million 1.6% 9 Toyota Toyota Motor Philippines Corp. Camry, Corolla, Innova 1989 17,826 units 1,287 P 2,423 million 34% 10 Honda Honda Parts Manufacturing Corp. manual transmissions 1992 80,738 units 349 P 810.8 million 100%

11 Isuzu Isuzu Autoparts Manufacturing Corporation transmissions 1996 189,157 units 475 P 442 million 0% (*2)

12 Mitsubishi Asian Transmission Corporation (ATC) transmissions, engines, axles 1973 404,035 units 485 P 350 million 5%

13 Toyota Toyota Autoparts Philippines Inc. transmissions, constant velocity joints 1990 220,731 units(*3) 580 P 1,000 million 95%

(*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

6 The Philippines Thailand T hailand

LAOS MYANMAR Luang Prabang Haikou (BURMA) Chiang Mai Gulf of 2 Ayutthaya TongkingHainan Metro Manila Vientiane 5 6 Paatthhumtumthhaniani Yangon 10 Bangkokangkok Makti (Rangoon) Rizal Tak 3 Samrong-Tai Moulmein Udon Thani Mekong 9 Gatewayateway Canlubang Binan Hue 1 7 8 9 12 Samutprakarn Santa Rosa Gulf of THAILAND Ubon Ratchathani Da Nang 13 hon uri Martaban Nakhon C b Laguna Ratchasima

Bangkok Tonle Sap CAMBODIA Qui Nhon VIETNAM 4 11 Rayong Phnom Penh Nha Trang Andaman Sihanoukville Ho Chi Minh Andaman Is. Sea (Saigon) South China Gulf of Rach Gia Can Tho Sea Nicobar Is. Thailand Palawan

Phuket MalaySongkhla Pen

Kota Bharu Banda Aceh George Town (Penang) Sandakan BRUNEI Ipoh

■AUTOMOBILE PRODUCTION COMPANIES ●COMPONENTS MANUFACTURING COMPANIES

EstablishedProduction Employees Capital Investment Headquarter’s Automaker Company Products Stake 1 Hino Hino Motor Manufacturing (Thailand) Ltd. medium & heavy-duty trucks and buses 2003 7,997 units 3,066 Bht. 2,000 million 80% 2 Honda Honda Automobile (Thailand) Co., Ltd. Accord, Civic, City, CR-V, Jazz 1983 104,660 units 3,745 Bht. 5,460 million 91.5% 3 Isuzu Isuzu Motors Co., (Thailand) Ltd. pick-ups, N-series, F-series 1966 185,711 units 3,473 Bht. 8,500 million 6.7% 4 AutoAlliance (Thailand) Co., Ltd. Mazda B-Series, Ford Ranger, Everest 1995 109,608 units 2,978 Bht. 5,000 million 45% Mitsubishi Motors (Thailand) Co.,Ltd. 5 Mitsubishi (MMTh) Lancer, Strada, Space Wagon, Triton 1987 159,214 units 4,074 Bht. 7,000 million 99.79% Mitsubishi Fuso Truck (Thailand) Co., Ltd. 6 Mitsubishi Fuso (MFTT) Canter, Fuso 2004 2,194 units 205 Bht. 500 million 100% Siam Nissan Automobile Co., Ltd. Frontier, Wingroad 1973 Bht. 1,930.91 million 75% 7 Nissan 44,022 units 1,515 Siam Motors & Nissan Co., Ltd. Tiana, Sunny 1962 Bht. 13.33 million 75% 8 Nissan Diesel Nissan Diesel (Thailand) Co., Ltd. trucks and buses 1987 1,374 units 184 Bht. 1,896 million 0% 9 Toyota Toyota Motor Thailand Co., Ltd. Camry, Corolla, Vios, Wish, Hilux Vigo, Fortuner, engines 1962 366,935 units 5,909 Bht. 7,520 million 86.4% 10 Isuzu Isuzu Engine Manufacturing Co., (Thailand) Ltd. diesel engines 1987 216,198 units 1,019 Bht. 1,025 million 1.4% knuckle spindles, knuckle arms, rear axle 11 Nissan Siam Metal Technology Co., Ltd. shafts, forging parts for automobile 1996 5,510,284 units 250 Bht. 617 million 25% engine unit (assembly) 45,021 units Nissan Powertrain (Thailand) Co., Ltd. (*1) 1987 21,163 units (*2) 241 Bht. 1,400 million 35% engine parts machining (cylinder blocks, cylinder heads) (*3) 12 Nissan 26,404 units Design/manufacturing of stamping die and body SNN Tools & Dies Co., Ltd. ass'y jig for autobody. Parts production of stamping 1989 --- 328 Bht. 135 million 27.8% and sub-ass'y using above-mentioned dies and jigs. 13 Toyota Siam Toyota Manufacturing Co., Ltd. diesel/gasoline engines, propellar shifts, casting (blocks, heads) 1987 403,873 units (*4) 2,256 Bht. 850 million 96%

(*1)Thai Co., Ltd. became Nissan Powertrain (Thailand) Co., Ltd. in December 2004. (*2) cylinder blocks (*3) cylinder heads (*4) diesel/gasoline engines 7 2005 Production Facilities

in ASEAN Myanmar

Vietnam Lao Cai Hong Kong K Mandalay 1 Socson B MYANMAR 2 4 anoi (BURMA) LAOS H 8 Me Linh Gulf of Haikou V ietnam Tongking Hainan Yangon (Rangoon) Udon Thani Mekong Hue Moulmein THAILAND Gulf of Da Nang Martaban Nakhon Ratchasima VIETNAM Bangkok CAMBODIA Qui Nhon South China Sea Gulf of Phnom Penh Thailand Andaman 7 Bien Hoa Sea 3 5 6 Ho Chi Minh City

Can Tho Palawan

■AUTOMOBILE PRODUCTION COMPANIES

Established Production Employees Capital Investment Headquarter’s AutomakerCompany Products Stake 1 Daihatsu Vietindo Daihatsu Automotive Corporation Hijet, Citivan, Terios 1995 581 units 132 US$ 12.3 million 26% 2 Hino Hino Motors Vietnam, Ltd. medium & heavy-duty trucks and buses 1996 661 units 48 US$ 8.11 million 51% 3 Isuzu Isuzu Vietnam Co., Ltd. N-series, Trooper, Hi-Lander 1995 2,799 units 265 US$ 15 million 35% 4 Mazda Vietnam Motors Corporation Mazda3, Mazda6, Premacy 1991 697 units 634 US$ 13.35 million 0%（*1） 5 , Pajero, Jolie, Grandis 5,005 units 25% Vina Star Motors Corporation (VSM) 1995 330 US$ 16 millon 6 Mitsubishi Fuso Canter 1,211 units 0% 7 Suzuki Vietnam Suzuki Corp. Carry, Wagon R+, Vitara 1995 4,053 units 337 US$ 18.5 million 35% 8 Toyota Toyota Motor Vietnam Co., Ltd. Camry, Corolla, Hiace, Land Cruiser, Innova, Vios 1995 13,168 units 559 US$ 49.14 million 70% (*1) Technology Tie-up

INDIA CHINA

Myanmar Kunming Salween

Nanning MYANMAR Lao Cai (BURMA)

Irrawaddy Ha Noi Hai Phong LAOS

Luang Prabang Gulf of Haikou Chiang Mai Tongking Hainan Vientiane Bay of 1 Yangon Bengal Tak Moulmein Udon Thani Mekong Hue

THAILAND Ubon Gulf of Da Nang Martaban Ratchathani

■AUTOMOBILE PRODUCTION COMPANY EstablishedProduction Employees Capital Investment Headquarter’s Automaker Company Products Stake 1 Suzuki Myanmar Suzuki Motor Co., Ltd. Carry, Wagon R+ 1998 266 units 33 US$ 6.7 million 60%

8 Steady Growth in Production in ASEAN 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 Socson to a 16% increase over the previous year. Hanoi Me Linh 2,200,000 ASEAN Total

2,000,000

1,800,000

1,600,000

1,400,000

1,200,000

Bien Hoa 1,000,000

Ho Chi Minh City Units Produced 800,000

600,000

400,000

200,000

0 1994 1995 1996 1997 1998 1999 2000 2001 2002 20032004 2005 Export Expansion in 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.

450,000

400,000

350,000

300,000

250,000

200,000

Yangon Units Exported 150,000

100,000

50,000

0 1994 1995 1996 1997 1998 1999 2000 2001 2002 20032004 2005

9 JAMA's Activities in ASEAN

Bilateral and Multilateral Economic Partnerships with ASEAN Countries 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.

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

10 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 Number of Experts Dispatched Phase (incl. multiple visits to a company) (incl. 1 coordinator per country) 1 25 20 Indonesia 2 32 25 1 45 20 Malaysia 2 58 20 1 42 19 The Philippines 2 36 11 1 110 33 Thailand 2 90 31

11 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

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

12 Fuel Seminars

To promote greater recognition of the fact that, even with engine upgrades, better air quality 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.

Cooperation in the Organization of Motor Shows 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 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.

13 The History of Japanese Automakers in ASEAN

1996 Daihatsu starts production of the Hijet at Vietindo 2001 Daihatsu establishes Perodua Auto Corporation Daihatsu Automotive Corporation, its joint venture Sdn. Bhd. in Malaysia. company in Vietnam. Honda achieves an aggregate production level of Hino establishes Hino Motors Vietnam, Ltd. in 10 million units for motorcycles, automobiles and Vietnam. power equipment in Thailand. Aggregate motorcycle production at Honda in both Nissan increases capital investment in P. T. Ismac Indonesia and Thailand reaches 5 million units. Nissan Manufacturing in Indonesia, with a name Isuzu establishes Isuzu Motors Asia Ltd. in change to P. T. Nissan Motor Indonesia (NMI), and Singapore as its regional administration and support integrated production and sales operations. center. starts sales of its models through GM Auto Nissan Diesel establishes a joint venture company World in the Philippines. for truck and bus production with P. T. Astra Nissan Subaru starts sales of its models through GM Auto Diesel Indonesia (Jakarta) in Indonesia. World in Indonesia. Suzuki starts automobile and motorcycle production Toyota establishes Toyota Motor Asia Pacific Pte. at Vietnam Suzuki Corp. Ltd. in Vietnam. Ltd. in Singapore. Toyota starts production at Toyota Motors Vietnam 2002 Daihatsu increases capital investment in P. T. Astra Co., Ltd. in Vietnam. Daihatsu Motor in Indonesia. 1997 Aggregate automobile production at MMC Sittipol Honda begins exporting the Thai-made Fit Aria to Co., Ltd. of Mitsubishi in Thailand reaches Japan. 1 million units. Honda constructs a new plant for automobile Nissan opens Siam Nissan Casting Co., Ltd., its production in the Karawang district in Indonesia. production base for cast engine parts in Thailand. Suzuki holds a capital majority in P. T. Indomobil Nissan starts production at a new factory of Nissan Suzuki International in Indonesia. Motor Philippines Inc. (NMPI), its production and 2003 Hino (Indonesia) establishes a new sales company, sales base. P. T. Hino Motors Sales Indonesia, in April to take 1998 Daihatsu increases capital investment in P. T. Astra over sales operations from P. T. Hino Indonesia Daihatsu Motor in Indonesia. Manufacturing, which previously handled both Honda starts exporting the Thai-made Accord manufacturing and sales and which then becomes, following the City in 1997. also in April, P. T. Hino Motors Manufacturing Mitsubishi constructs a new plant of Asian Indonesia (HMMI). Transmission Corporation in the Philippines. Hino (Thailand) establishes a new company, Hino Suzuki concludes a joint venture contract for Motor Manufacturing (Thailand) Ltd. (HMMT), in motorcycle and automobile production with June as a separate manufacturing division of Hino Myanmar Suzuki Co., Ltd. Motors Thailand Ltd. (HMT), which previously Toyota starts exporting its models made in handled manufacturing and sales. In July, HMT Thailand. becomes Hino Motors Sales (Thailand) Ltd. (HMST). 1999 Hino integrates its two affiliates in Thailand, Thai Hino obtains permission under the AICO scheme in Hino Motor Sales, Ltd. and Thai Hino Industry Co., September to begin a mutual industrial complementation Ltd., into the newly created Hino Motors (Thailand) arrangement between Thailand and Malaysia, as a Ltd., investing capital of 713 million bahts. result of the abolition of the nationalized Independent automobile distributorship in the production law in Thailand in January 2001. Philippines becomes Suzuki Philippines Inc., a Honda opens a new automobile production factory wholly-owned local subsidiary selling passenger in Pegoh, Malaysia. This factory also produces and cars and commercial vehicles. exports constant velocity joints to Asia.

14 2003 Honda opens a new automobile production factory 2004 Mitsubishi spins off local operation in 2004, in Karawang, Indonesia and starts exporting its establishing Mitsubishi Fuso Truck (Thailand) Co., Indonesian-made Stream to Thailand. Ltd. (MFTT) as truck/bus specialized production Honda opens a new manual transmission plant in and sales company in Thailand. the Philippines and expands its exports to Nissan invests more than 10 billion bahts in Siam and North America. Nissan Automobile Co., Ltd. The number of Siam Honda opens a hi-tech automatic transmission plant Nissan's employees is expected to at least double by in Indonesia and starts exporting to ASEAN 2008 from about 2,000 at present. countries and Europe. Toyota starts exporting the Indonesia-made Avanza Mitsubishi's production and sales arm in Thailand, to Thailand. MMC Sittipol Co., Ltd., becomes Mitsubishi Toyota launches IMV (Innovative International Motors (Thailand) Co., Ltd. in order to reinforce Multi-purpose Vehicle) project by starting sales and marketing through a common company production of pick-up trucks and SUVs in Thailand name. Mitsubishi also posts aggregate exports of and mini-vans in Indonesia. over 500,000 units for one-ton pickup trucks. 2005 Honda announces to build a new automobile Suzuki establishes Suzuki Automobile (Thailand) manufacturing facility within the current Co., Ltd. as a distributor of automobiles in motorcycle plant site to begin its automobile Thailand. business in Vietnam after the middle of 2006. Toyota-Astra Motor (TAM) is split into two Mitsubishi's new and exclusive sales network in companies to handle sales and manufacturing Malaysia; Mitsubishi Motors Malaysia Sdn. Bhd., (TAM for sales, TMMIN for manufacturing). a joint venture company between Mitsubishi Toyota establishes Toyota Technical Center Asia Corporation and Edaran Otomobil Nasional Berhad Pacific Thailand Co. Ltd. (TTCAP-TH) in Thailand (EON), is established in March 2005, and starts its as a technical development center in Asia. sales in July 2005. 2004 Honda opens a new Automobile Technical Training Mitsubishi (Thailand) announces that its Center in Thailand in August. The Center automobile export exceeded 700,000 units by undertakes the training of not only automobile sales March. and service personnel in Thailand, but also ASEAN Mitsubishi Fuso transfers its truck and bus instructors. It is also open to 3rd party users such operation in Malaysia to DaimlerChrysler Malaysia as vocational schools. (DCM) from January 1, 2005. A new production and administration company, Nissan newly installs Upsetter line (two lines in Isuzu Motors Co., (Thailand) Ltd., is established in total) in Thailand. Thailand in September 2004 by the combination of Toyota starts production of IMV models in the its local administration company, Isuzu (Thailand) Philippines in February and Malaysia in March. Co., Ltd., and its local production company, Isuzu Toyota announces that its production capacity Motors Co., (Thailand) Ltd. At the moment of the increases up to approximately 550,000 vehicles establishment, Isuzu Motors Co., (Thailand) Ltd. annually and construction of a new plant in receives an additional amount of 7 billion bahts to Thailand in April. its capital, which becomes 8.5 billion bahts. Toyota announces that its Karawang plant Mitsubishi annual auto export total to Thailand production capacity increases up to approximately surpasses 80,000 units, setting new record high. 100,000 vehicles annually in Indonesia in April. Mitsubishi announces the new automobile developed independently by PROTON at Malaysia in February, and starts sales of it in April.

15 Head Office Jidosha Kaikan, Shiba Daimon 1-chome, Minato-ku Tokyo, 105-0012 Japan TEL: +81-3-5405-6126 FAX: +81-3-5405-6136 URL:http://www.jama.or.jp/

Singapore Representative Office 143 Cecil Street #09-03/04 GB Bldg. 9F Singapore 069542 TEL: +65-6221-5057 FAX: +65-6221-5072

North American Office 1050 17th Street, N.W., Suite 410 Washington, D.C. 20036, U.S.A. TEL: +1-202-296-8537 FAX: +1-202-872-1212 URL: http://www.jama.org/

European Office Avenue Louise 287 box 9, 1050 Brussels, Belgium TEL: +32-2-639-1430 FAX: +32-2-647-5754

Beijing Office Unit 1001B, Level 10, China World Tower 2 No.1 Jian Guo Men Wai Avenue Beijing, 100004 China TEL: +86-10-6505-0030 FAX: +86-10-6505-5856

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