DRIVING GROWTH TOWARDS THE FUTURE 2016 02 Foreword

Production Facilities in ASEAN in 2015 & Related Data

03 - 04 ASEAN

05

06

07 The Philippines

08 Thailand

09

10 /

11 - 12 Statistics

JAMA Activities in ASEAN

13 JAMA Activities in AMEICC

14 JAMA Activities Towards Comprehensive Certification Systems and Safety / Environmental Regulations

15 Promoting the ASEAN MRA and International Whole Vehicle Type Approval

JAMA Members’ Recent Activities in ASEAN

16 Human Resource Development Activities

17 - 18 New / Additional Investment and Technology Transfer

19 - 22 Social Contribution Activities 02

ASEAN- Hand in Hand Driving Growth Towards the Future

Japanese automotive manufacturers in ASEAN produced (20 trillion dollars). The creation of an economic bloc on this 3.5 million units, sold 2.5 million, and exported 1.37 million immense scale is expected to significantly benefit participants. passenger , trucks and buses in 2015. In view of this In order to achieve desired higher levels of liberalization, the favourable trend, JAMA member companies have been AEC will play an important role in RCEP. making active investments in the ASEAN region, bringing the combined number of factories and facilities to 99, with direct JAMA will continue to bolster the sound foundation and employment reaching approximately 153,000 people. vigorous development of ASEAN’s .

Supporting sustainable growth within the automotive industry On the technical front, JAMA is hopeful that the ASEAN and other regional industries, the ASEAN Economy Community Mutual Recognition Arrangement (MRA) for automotive (AEC), which was established in 2015, is expected to not only technical regulations (based on UN regulations under the 1958 help integrate and liberalize ASEAN markets, but also further Agreement), will be adopted in 2016 across ASEAN. On the enhance international competitiveness. business side, the establishment of flexible and user-friendly Rules of Origin, self-certification systems, and further-simplified As of December 2015, ASEAN completed 93 per cent of the customs procedures, will continue to be sought, promoting high priority scorecard measures established in the AEC 2015 trade facilitation. Blueprint. Some of the more critical of these include elimination of Non-Tariff Barriers (NTBs), trade facilitation, simplification Together with its ASEAN counterparts, Japanese automobile of rules of origin, standards and technical regulations, and manufacturers continue to strongly support corporate social conformity assessment procedures. responsibility (CSR) activities, including environmental protection, the promotion of enhanced road safety, driver and To further support sustainable regional growth, an ASEAN- student training, and human capital development. Deeply centered economic integration agreement, the Regional grounded in a history of cooperation with local partners Comprehensive Economic Partnership (RCEP), has been spanning half a century, JAMA will continue its tireless efforts proposed, with official negotiations starting in 2012. RCEP’s to further strengthen relationships and drive growth hand in realization will leverage the strength of a population of 3.4 hand towards ever-greater mutual development over the next billion, (approximately half of the world’s population), with a decade. total GDP reaching approximately one third of the global total, About JAMA

Established in 1967, the Japan Automobile Manufacturers • Assists in the rationalization of automobile production, and Association, Inc. (JAMA) is a nonprofit industry association helps establish policy for the development, improvement currently comprised of fourteen manufacturers of passenger and promotion of production technology. cars, trucks, buses and motorcycles in Japan. • Establishes and promotes policies related to automobile The globalization of auto manufacturing contributes trade and international exchange. significantly to local and national economies around the world. • Engages in public interest, international cooperation and As directions in auto manufacturing increasingly influence the other activities involved in meeting its organizational world we live in, JAMA takes its role and mission ever more objectives. seriously, acting not only to promote increased environmental protection and greater road safety but also to enhance the Chairman international business environment. Hiroto Saikawa (Chief Competitive Officer & Vice Chairman, Motor Co., Ltd.) Objectives To promote the sound development of the automobile Overseas Offices industry and contribute to social and economic welfare. North American Office (Washington, D.C., U.S.A.) Activities European Office (Brussels, Belgium) • Conducts studies and surveys related to automobile Singapore Branch production, distribution, trade and use. Beijing Representative Office (People’s Republic of China)

1 RCEP is an ASEAN-centered proposal for a regional FTA with countries already holding existing FTAs – Australia, China, India, Japan, the Republic of Korea, and New Zealand. Production Facilities in ASEAN in 2015 & Related Data by Country 03 ASEAN (2015) Land Area (sq.km) 4,486,739 Population: 630,492,642 GDP at current prices (US$ million): 2,442,472 GDP per capita (US$): 117,611

ASEAN Source: World Bank (http://data.worldbank.org/)

MYANMAR 1 95 0.8 MYANMAR VIETNAM

LAOS

THAILAND 27

63,853 THAILAND 2689

MALAYSIA 17 17,131 MALAYSIA 843

SINGAPORE SINGAPORE 5 1,072 04

VIETNAM Automobile 10 Related Facilities 99 Facilities 15,072 Employment in 152,869 People Related Business 87 ASEAN Automobile Production, Sales and Exports of JAMA Members and their ASEAN Counterparts

Production Qty 3,482,057 Units

Sales Qty 2,547,624 Units

Exports Qty 1,369,240 Units

PHILIPPINES THE PHILIPPINES 12 8,074 170

BRUNEI INDONESIA 27 47,572 1628

INDONESIA

country name

f a c i l i t i e s

e m p l o y m e n t

a n n u a l p r o d . c a p . ( x 1 0 0 0 ) Production Facilities in ASEAN in 2015 & Related Data by Country 05 (2015) Land Area (sq.km) 1,910,930 Population: 257,563,815 GDP at current prices (US$ million): 861,934 GDP per capita (US$): 3,347

Source: World Bank (http://data.worldbank.org/) 15 16 25 26 20 22 17 18 19 13 Tambun 21 23 24 27 14 Cikarang

Purwakarta

Automobile production Companies Components Manufacturing Companies R&D & Other Operations

Manufacturer Company Name / Facility Name Est. Capitalization Equity Products Annual Prod. Employees (x 1 milliion) Stake Cap. (x 1,000)

Daihatsu P. T. Jan 92 IDR 894,370 61.75% Xenia, Terios, Gran Max, Luxio, Ayla(Avanza, — 10,700 Rush, Agya, Wigo, Townace, Liteace)(1) 1 Sunter Assembly Plant Jan 92 Xenia, Terios, Gran Max , Luxio 330 — 2 Karawang Engine Plant Nov 06 Engine, Engine /Transmission parts — —

3 Karawang Assembly Plant Oct 12 Xenia, Ayla 200 — 4 Hino P.T. Manufacturing Indonesia Dec 82 USD 112 90% Trucks and buses — 1,973

Honda P. T. Prospect Motor USD 70 51% 200 8,017

5 1st Plant Mar 99 Freed, CR-V, HR-V, Mobilio

6 2nd Plant Jan 14 Mobilio, Jazz, Brio, Brio Satya, BR-V

7 Isuzu P.T. Isuzu Astra Motor Indonesia Apr 08 IDR 1,092,000 50% Medium Duty Trucks, Light Duty 52 1,025 Trucks, Small-Sized Buses, Panther, Wagon and Trucks

8 Mitsubishi PT Kama Yudha Indonesia Dec 14 IDR 1,332, 000 51% — 73 9 2% COLT T120SS, L300, Outlander Sport 140 729 P.T.Krama Yudha Tiga Berlian Motors(2) Jun 73 IDR 20,944 10 Mitsubishi — Canter, FUSO — —

Nissan P. T. USD 263.4 75% Grand Livina, Livina, X-TRAlL, Serena, 250 2,880 March, Juke, Evalia , GO+, GO 11 Purwakarta 1st Plant Oct 95

12 Purwakarta 2nd Plant May 14

Suzuki P. T. Indomobil Motor USD 89 94.9% 4,600

13 Tambun Plant Jan 91 APV, Carry, Wagon R 140 14 Cikarang Plant Jan 15 Ertiga 60

Toyota P. T. Motor Manufacturing Apr 71 IDR 19,524 95% Innova, Fortuner, Etios Valco, Vios, — 9,789 Indonesia Yaris, Engines

15 Sunter Plant 1 Apr 73 Engine 195 16 Sunter Plant 2 (Office and Plant) Jun 77 Stamping parts / dies, aluminum casting 12 17 Karawang Plant 1 Mar 98 Innova, Fortuner 130 18 Karawang Plant 2 Mar 13 Etios Valco, Vios, Yaris 120 19 Karawang Engine Plant Feb 16 Engine 216

20 P.T. Sugity Creatives Apr 95 IDR 37,740 0%(3) NAV1 6 1,600 21 Honda P.T. Honda Precision Parts Jul 02 USD 150 95% Automatic transmissions and — 3,888 Manufacturing engine valves for automobiles

22 Isuzu P. T. Mesin Isuzu Indonesia Feb 83 IDR 13,200 68.10% Diesel engines and related parts 50 346

23 P. T. Asian Isuzu Casting Center Apr 97 USD 74.3 70.22% Casting Parts 42.4 tons 594

24 P. T. TJForge In donesia Mar 13 IDR 1,500, 000 71.08% Forging, Processing and Assembly — 372 of automobile parts

Mitsubishi 25 P. T. Mitsubishi Krama Yudha Motors & 0% Pressed parts and engines — 986 Manufacturing Aug 73 IDR 11,451 26 Mitsubishi Fuso — Engine, Body parts — — 27 Daihatsu P.T. Astra Daihatsu Motor

Research & Development Center Apr 13 — — Research & Development — (4)

(1) Toyota Brand (2) Consignment production to PT. Krama Yudha Rata Motor (3) P.T.Sugity Creatives is 6.5% owned by P. T. Toyota Motor Manufacturing Indonesia (4) R&D employees are included in PT Astra Daihatsu Motor. 06 (2015) Land Area (sq.km) 330,800 Population: 30,331,007 GDP at current prices (US$ million): 296,218 GDP per capita (US$): 9,766 Serendah Source: World Bank (http://data.worldbank.org/) 15 17

16 Seremban

14

Automobile production Companies Components Manufacturing Companies R&D & Other Operations

Manufacturer Company Name / Facility Name Est. Capitalization Equity Products Annual Prod. Employees (x 1 milliion) Stake Cap. (x 1,000) 1 Daihatsu Manufacturing Sdn. Bhd. Feb 93 RM 140 0% (1) ALZA, MYVI 230 4,310 2 Perodua Global Manufacturing Sdn. Apr 13 RM 200 0% (1) AXIA 100 2,140 Bhd.

3 Hino Hino Motors Manufacturing (Malaysia) Oct 12 RM 78.8 58% Trucks and buses 10 329 Sdn. Bhd.

4 Honda Honda Malaysia Sdn. Bhd. Nov 00 RM170 51% City, Civic, Accord, CR-V, 100 2,905 Jazz, HR-V

5 Isuzu Isuzu Hicom Malaysia Sdn. Bhd. Jul 96 RM 100 51% Medium Duty Trucks, Light 12 594 Duty Trucks, Small-Sized Buses, Pick-Up Trucks

6 Corporation Sdn Bhd Aug 97 — 0% Mazda 3, CX-5 20 —

7 Mitsubishi Fuso Mercedes-Benz Malaysia Sdn. Bhd. Jan 05 RM 134.7 0% Canter, FUSO — —

8 Mitsubishi Tan Chong Motor Assemblies Sdn. Bhd. Aug 76 RM 2 — ASX 65 2,567

Nissan Tan Chong Motor Assemblies Sdn. Bhd. RM 2 — Serena, X-Trail, Grand Livina, 65 2,710 Livina X-Gear, Teana, Navara, 9 Segambut Plant Aug 76 NV200, Almera 10 Serendah Plant May 07 11 Tan Chong Motor Assemblies Sdn. Bhd. Aug 76 RM 1 — Subaru XV, 60 2,567 100

12 Toyota Assembly Services Sdn. Bhd. May 68 RM 7.5 0%(2) Vios, Camry, Innova , Hilux, 80 3,003 Fortuner, Hiace

13 UD Trucks Tan Chong Motor Assemblies Sdn. Bhd. Aug 76 RM 1 0% Trucks and buses 1 1,169 14 Honda Honda Autoparts Manufacturing Sdn. 1992 RM 25.8 51% Manufacture automobile parts — 190 Bhd.

15 Daihatsu Perodua Engine Manufacturing Sdn. Sep 96 RM 40 0% (1) Engines — 650 Bhd.

16 Daihatsu Daihatsu Perodua Engine Sep 14 RM 165 51% Engines — 300 Manufacturing Sdn. Bhd.

17 Daihatsu Perodua Manufacturing Sdn. Bhd. — — — Product planning, Styling — (3) design, Development, Engineering and Testing

(1) An investment through local affiliated company (2) Assenmly Service Sdn. Bhd. is 100% owned by UMW Toyota Motor Sdn.Bhd. and UMWT is 39% owned by Toyota Motor Corporation (3) R&D employees are included in Perodua Manufacturing Sdn. Bhd. Production Facilities in ASEAN in 2015 & Related Data by Country 07 (2015) Land Area (sq.km) 300,000 Population: 100,699,395 GDP at current prices (US$ million): 291,740 GDP per capita (US$): 2,899

Source: World Bank (http://data.worldbank.org/)

Automobile production Companies Components Manufacturing Companies

Manufacturer Company Name / Facility Name Est. Capitalization Equity Products Annual Prod. Employees (x 1 milliion) Stake Cap. (x 1,000) 1 Hino Hino Motors Philippines Corporation Mar 75 PHP 900 70% Trucks and Buses — 560

2 Honda Honda Cars Philippines Inc. Oct 90 PHP 1,100 74.24% City 15 575

3 Isuzu Isuzu Philippines Corporation Aug 95 PHP 1,000 35% Assembly of buses and small 15 490 and medium-sized CVs

4 Mitsubishi Mitsubishi Motors Philippines Feb 63 PHP 1,640 51% L300, Adventure 50 982 Corporation

Nissan Nissan Philippines, Inc. Oct 13 PHP 428 51.00% — — 67

5 Star Motor Manufactuing. Industries, Patrol 14 168 Inc. 6 Univation Motor Philippines, Inc. Almera 36 121

7 Toyota Toyota Motor Philippines Corp. Aug 88 PHP 1.549 34% Innova, Vios 40 2,337 (Office and Plant)

8 Santa Rosa Plant Apr 97 — — — 9 Honda Honda Parts Manufacturing Corp. Dec 92 USD 27 100% Manual transmissions — 333 10 Isuzu Isuzu Autoparts Manufacturing Nov 96 PHP 442 100% Transmissions 248 375 Corporation

11 Mitsubishi Asian Transmission Corp. Jan 73 PHP 770 90% Processing and assembly of — 574 transmissions

12 Toyota Toyota Autoparts Philippines Inc. Aug 90 PHP 1,000 95% Transmissions, Continuous — 1,492 velocity joints 08 (2015) Land Area (sq.km) 513,120 Population: 67,959,359 GDP at current prices (US$ million): 395,282 GDP per capita (US$): 5,816

Source: World Bank (http://data.worldbank.org/)

17

5 11 13 16 18 20 21 26 27 Bang Bo 14 15 Chachoengsao

7 8 9 22 23 24 25

6 12 19

Automobile production Companies Components Manufacturing Companies R&D & Other Operations

Manufacturer Company Name / Facility Name Est. Capitalization Equity Products Annual Employees (x 1 milliion) Stake Prod. Cap. (x 1,000)

Hino Hino Motors Manufacturing (Thailand) Ltd. Jul 64 THB 2,500 80% Trucks and Unit Production 17 4,038

1 Samrong Plant Jul 64

2 Bangplee Plant Nov 92

3 Bangpakong Plant Feb 04

4 Honda Honda Automobile (Thailand) Co., Ltd. Dec 00 THB5,460 75.94% City, City(CNG), Jazz, Civic, Accord, 420 4,350 Accord(Hybrid), CR-V, BRIO, BRIO Amaze, HR-V, BR-V, Mobilio

5 Isuzu Isuzu Motors Co., (Thailand) Ltd. Apr 66 THB 8,500 71.10% Large And Small-Sized CVs and Pick Up Trucks 346 5,605

6 Mazda AutoAlliance (Thailand) Co., Ltd. Nov 95 THB 8,435 50% Mazda BT-50, Mazda 2, Mazda 3, CX-3 295 7,579

Mitsubishi Mitsubishi Motors (Thailand) Co., Ltd. May 61 THB 7,000 100% Triton, Pajero Sport, Mirage, Attrage 424 6,277

7 Laemchabang Plant (No.1) 8 Laemchabang Plant (No.2) 9 Laemchabang Plant (No.3) 10 Mitsubishi Fuso TC Manufacturing and Assembly Dec 09 — — CANTER, FM, FN and FV — — (Thailand) Co., Ltd.

11 Nissan Nissan Motor (Thailand) Co., Ltd. Sep 77 THB 1,930.91 75% Frontier Navara, Teana, March, Almera, Sylphy, Pulsar 280 5,990 12 Suzuki Suzuki Motor (Thailand) Co., Ltd Aug 11 THB12,682 100% Swift, Celerio, Ciaz 100 1,650

Toyota Co., Ltd. Oct 62 THB 7,520 86.4% Hilux Revo, Camry, Corolla, Camry HV, Vios, Yaris, — 16,435 Fortuner 13 Samrong Plant Feb 64 — — Hilux Revo 241 14 Gateway Plant Feb 96 — — Camry, Corolla, Camry HV, Vios, Yaris 309 15 Ban Pho Plant Jan 07 — — Hilux Revo, Fortuner 237

16 Toyota Auto Works Co., Ltd. Jun 88 THB 21.7 0%(1) Hiace 20

17 Isuzu Isuzu Engine Manufacturing Co., Jul 87 THB 1,025 98.60% Diesel engines — 1,333 (Thailand) Ltd.

18 Thai International Die Making Co., Ltd. Sep 87 THB 100 88.40% Forging of press molds, Press processing — 634 19 IT Forging (Thailand) Co., Ltd. Dec 94 THB 700 59.60% Forged parts — 294

20 Nissan Nissan Powertrain (Thailand) Co., Ltd. Aug 87 THB 1400 90% Engines — 598 21 SNN Tools & Dies Co., Ltd. Feb 89 — 27.8% Stamping dies, Tools & Jigs, Stamping parts — 428

22 Mazda Mazda Powertrain Manufacturing Jan 13 THB 6566.973 100% Transmissions, Engines — 547 (Thailand) Co., Ltd.

23 Mitsubishi MMTH Engine Company Limited May 88 THB 20 0%(2) Engines, Stamping parts — 1,042

Toyota Siam Toyota Manufacturing Co., Ltd. Jul 87 THB 2850 96% Engines, Propeller Shaft, Cylinder Block — 4,186

24 Amata Nakorn Plant Jul 89 — — — — —

25 Honda Honda R&D Asia Pacific Co., Ltd. Dec 05 THB 200 100% Product Planning, Styling Design, Engineering — — Design, Vehicle Test and Material Research

26 Nissan Nissan Motor Asia Pacific Co., Ltd. July 11 THB 224.5 100% Regional marketing and sales function. — 367 Product planning and management office. R&D strategy and management

27 Toyota Toyota Motor Asia Pacific Engineering & Apr 07 THB 1,300 100% Development and evaluation efforts — 2,500 Manufacturing Co., Ltd. for locally produced vehicles as well as operational support for Toyota procuction affiliates in Asia, Oceania and the Middle East

(1) Toyota Auto Works Co., Ltd. is 37% owned by Toyota Motor Thailand Co., Ltd. (2) MMTH Engine Company Limited is 100% owned by Mitsubishi Motors Thailand Co., Ltd Production Facilities in ASEAN in 2015 & Related Data by Country 09 (2015) Land Area (sq.km) 330,972 Population: 91,703,800 GDP at current prices (US$ million): 193,599 GDP per capital (US$): 2,111

Source: World Bank (http://data.worldbank.org/)

10

9

Da Nang

Automobile production Companies R&D & Other Operations

Manufacturer Company Name / Facility Name Est. Capitalization Equity Products Annual Prod. Employees (x 1 milliion) Stake Cap. (x 1,000) 1 Hino Hino Motors (Vietnam) Ltd. Jun 96 USD 8.11 51% Trucks and buses — 101

2 Honda Honda Vietnam Co., Ltd. Mar 96 USD 62.9 42% CR-V, City 10 9,861 (1)

3 Isuzu Isuzu Vietnam Co., Ltd. Oct 95 USD 15 35% Medium Duty Trucks, Light 9 478 Duty Trucks & Bus Chassis

4 Mazda Vina Mazda Automobile Manufacturing Sep 10 VND100 billion 0% Mazda2, Maxda3, Mazda6, 16 300 Co., Ltd CX-5

5 Mitsubishi Mitsubishi Motors Vietnam Co., Ltd. Apr 94 USD 16 41.2% Pajero Sport 4 130

6 Mitsubishi FUSO Mercedes Benz Vietnam 1995 — — Trucks and buses — —

7 Nissan Tan Chong Industrial Equipment Apr 13 USD 40 100% Sunny 7 230 Vietnam Pte. Ltd. (in )

8 Suzuki Vietnam Suzuki Corporation Apr 95 USD 97.9 100% Carry, Swift 6 347(1)

9 Toyota Toyota Motor Vietnam Co., Ltd. Sep 95 USD 49.14 70% Camry, Corolla, Vios, Innova, 35 1,838 Fortuner

10 Nissan Nissan Techno Vietnam Co., LTD. Jun 01 USD 3 100% Development for vehicles, — 1,787 unit, parts

(1) Inclusive motorcycle business. 10 (2015) Land Area (sq.km) 676,590 Population: 53,897,154 GDP at current prices (US$ million): 64,866 Myanmar GDP per capita (US$): 1,204 Source: World Bank (http://data.worldbank.org/)

Automobile production Companies

Manufacturer Company Name / Facility Name Est. Capitalization Equity Products Annual Prod. Cap. Employees (x 1 milliion) Stake (x 1,000) 1 Suzuki Suzuki (Myanmar) Motor Co., Ltd. Feb 13 USD11.5 100% Carry Truck, Ertiga 0.8 95

(2015) Land Area (sq.km) 717 Population: 5,535,002 GDP at current prices (US$ million): 292,739 GDP per capita (US$): 52,888

Source: World Bank (http://data.worldbank.org/)

1

3

2

5

4

Other Facilities

Manufacturer Company Name / Est. Capitalization Equity Function Employees Facility Name (x 1 milliion) Stake 1 Honda Singapore Safety Driving Jul 83 SGD 2 27.5% Education at the time of obtaining motorcycle riding 246 Centre Ltd. or automobile driver’s licenses and safety training for companies and communities. 2 Honda Bukit Batok Driving Centre Apr 88 SGD 5 26% Education at the time of obtaining motorcycle riding 325 Ltd. or automobile driver’s licenses and safety training for companies and communities. 3 Isuzu Isuzu Motors Asia Ltd. Mar 96 USD 187 100% Buying and selling of complementary parts in the region. 38 Works as holding company for regional business entities and their management.

4 Nissan Nissan Singapore Pte. Ltd. Apr 12 USD 10 100% Support of marketing, sales operations and franchise 6 supervision in Singapore 5 Toyota Toyota Motor Asia Pacific Jul 90 SGD 6 100% Parts supply to all ASEAN countries and sales support for 457 Pte. Ltd.(1) marketing in Asia.

(1) Initially established as Toyota Motor Management Service Singapore Pte. Ltd., which was changed to its actual name in 2001. 11

ASEAN Automobile Production of JAMA Members and their ASEAN Counterparts

A total of 3.5 million units of passenger cars, trucks and buses were produced in 2015, a small drop of 7% compared to the previous year caused by reduced demand related to global economic downtrends.

4,000,000 3,867,573 3,740,929 3,735,043

3,500,000 3,482,057

3,000,000 2,712,132 2,568,365

2,500,000 2,308,011 2,076,965 2,027,123 1,971,589 2,000,000 1,859,391 1,748,939

1,471,998 1,500,000 1,273,082 1,096,065 997,940 1,000,000

500,000

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Myanmar Vietnam Thailand Philippines Malaysia Indonesia ASEAN

ASEAN Automobile Exports of JAMA Members and their ASEAN Counterparts

In 2015, a total of 1.37 million units of passenger cars, trucks and buses were exported by JAMA member companies and their ASEAN counterparts, representing a 2% surge compared to previous years. Among these, 1.0 million units were bound for destinations outside ASEAN, with the remaining classified as intra-ASEAN exports. ASEAN, a key strategic partner of JAMA member companies, has become a core production base, with ever-greater outbound sales expected in future.

1600000

1,369,240 1400000 1,343,869 1,266,655 1200000

1,027,723

1000000 922,599

800000 749,537 753,069

653,636

600000 562284 556,943

405511 400000 263923 212014 200000 139096 126037 110252 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Ext Intra Total 12 JAMA Members’ Automobile Sales by Country

Out of the 3 million new passenger cars, trucks and buses sold in ASEAN in 2015, around 83% ( 2.5million units) were built by JAMA member companies and their ASEAN counterparts, highlighting the key role these partners play in the region.

1,200,000 100%

1,013,291 90% 1,000,000 80%

799,632 800,000 70% 666,674 60% 600,000 50% 400,000 40% 288,609

209,267 200,000 30%

78,609 20% 0 Indonesia Malaysia Philippines Thailand Vietnam Singapore

Share Other JAMA

Number of Jobs and Facilities Contributed by JAMA Members and their ASEAN Counterparts

Despite below-expectation production and sales results, in 2015 a total of about 153,000 people were directly employed at 99 JAMA member and ASEAN counterpart facilities, on top of another 7 factories and facilities in the region. Driving indirect employment in supporting industries, automobile manufacturers continue to make ever-greater contributions to employment in the region. 99 100

160,000

93 90

120,000 83 80

80,000

71 70

67

65 65 61 62 40,000 63 60

0 50 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

# of facilities Singapore Myanmar Vietnam Thailand Philippines Malaysia Indonesia 13

JAMA Activities in AMEICC ASEAN integration is expected to further generate economies of scale in the region and contribute to the further development of the ASEAN automotive industry. To facilitate this, strengthened competitiveness will become increasingly important.

With the overall goal of strengthening the competitiveness of the ASEAN automotive industry, JAMA has been participating in the AEM-METI Economic and Industrial Cooperation Committee Working Group on the Automobile Industry (AMEICC-WGAI) meeting, starting from the group’s inception in 1998.

ASEAN-Japan Summit ASEAN Japan Summit Meeting

AEM-METI ASEAN Economic Ministers (AEM) and Minister for Economy, Trade and Industry (METI) of Japan

AMEICC-WGAI AEM-METI Economic and Industrial Cooperation Committee (AMEICC) Working Group on Automobile Industry (WGAI)

In view of the inauguration of the AEC last year, the 16th AMEICC Working Group on the Automobile Industry (AMEICC-WGAI) meeting was held in Cambodia in August 2015. At that time an exchange of opinions took place regarding further growth of the ASEAN automotive industry and future expectations.

At a special seminar held in tandem with the WGAI meeting, JAMA’s Chairman spoke about the close relationship between ASEAN and Japan, the increasing localization of JAMA members, challenges and expectations regarding AEC establishment including Mutual Recognition Arrangement (MRA), standardization of rules of origin (ROO), the early start-up of the ASEAN Single Window (ASW), and the need to implement comprehensive approaches in regard to road safety and environmental issues. Participants in the 16th AMEICC-WGAI meeting in Cambodia on August 2015 Seizing the opportunity, JAMA and AAF agreed on a joint statement confirming their resolve to strengthen the cooperative relationship between both organizations with a view to reinforcing ASEAN-Japan cooperation and raising the competitiveness of the ASEAN automotive industry.

As concrete outputs of the meeting, METI will work to formulate a comprehensive support program for human resource development within the ASEAN automotive industry. Furthermore, it is anticipated that governments and industries within ASEAN and Japan will accelerate and expand their human resource development efforts through various means. JAMA intends to actively support these efforts as well.

Participants in the 16th AMEICC-WGAI special seminar in Cambodia on August 2015 14

JAMA Technical Experts Working Together with ASEAN Partners Towards More Comprehensive Certification Systems and Safety / Environmental Regulations Harmonization of Technical Regulations and Mutual Recognition of Approval (MRA)

To further promote auto industry development, JAMA advocates the harmonization of technical regulations with a Mutual Recognition of Approval (MRA) process based on the United Nations WP29 (World Forum for Harmonization of Vehicle Regulations) 1958 Agreement, the only international agreement providing a legal basis for auto parts and systems. Under MRA, contracting parties agree to mutually recognize each other’s approvals without the need for re-certification.

Over the past decade, JAMA has dedicated significant amounts of effort to promotion of the 1958 Agreement, and in recent years to the to-be-established International Whole Vehicle Type Approval (IWVTA) agreement (an extension of the 1958 Agreement’s MRA to the whole vehicle) in concert with the Japanese Government.

ASEAN has been working steadily towards region-wide MRA for technical regulations for auto-parts and systems over the past decade, and JAMA has worked tirelessly side by side, lending significant support. For more than 10 years, JAMA experts in vehicle type approval, regulations, safety policies, fuels, and other areas, across its 14 manufacturing members, have unfailingly worked to share their wealth of knowledge and experience with their ASEAN counterparts.

JAMA’s unwavering commitment to ASEAN over the past decade can be witnessed in part via its participation in and organization of multiple annual gatherings, including AAF/TC3-JAMA1, JASIC Asia Government and Industry2, ACCSQ- APWG3, and AMEIC-WGAI.

To help accelerate the process of technical harmonization and promote further awareness of the IWVTA within ASEAN, JAMA established the Industry Forum of South East Asia (ISEA) was in 2015. Its first meeting (1st ISEA) held in , Malaysia last October generated overwhelming response from auto-industry members, including Japanese and non-Japanese marques across the region. In addition, the 1st ISEA Report was officially reported to the 1st JASIC Forum for South East Asia, with the latter receiving significant ASEAN and Japanese regulatory participation.

1st ISEA on Nov 23, 2015 1st JASIC Forum for South East Asia, on 24 Nov, 2015, Putrajaya, Malaysia

24th AAF/TC-3-JAMA Meeting on 15-16 Mar 2016, Bohol, Philipines

1 ASEAN Automotive Federation/Technical Committee 3 2 Japan Automobile Standards Internationalization Center 3 ASEAN Consultative Committee for Standard and Quality- Automotive Product Working Group 15

Promoting ASEAN MRA and International Whole Vehicle Type Approval

More efficient & speedier vehicle development More efficient international Greater efficency in obtaining 1) Promotion of regulatory harmonization and vehicle distribution type approval Increased vehicle inspection efficiency mutual recognition Enhanced regulation formulation and Enhanced productivity and continual improvement reductions in vehicle development cost, promoting safety and Harmonization and mutual recognition will help bring environmental innovation safer, more environmentally friendly vehicles to market and will strengthen international competitiveness in ASEAN countries as motorized vehicle adoption continues to soar.

2) ASEAN MRA As part of its plans for achieving economic integration (efforts beginning in 2015), ASEAN is currently working toward the establishment of the ASEAN Mutual Recognition Arrangement (ASEAN MRA) in order to promote harmonization and mutual recognition of motor vehicle technical regulations. This arrangement will initially target mutual ASEAN recognition of 19 UN regulations set forth in the 1958 Agreement. JAMA will continue to actively cooperate in service of efforts to establish the ASEAN MRA. 142 UN Regulations

3) Going global Efforts towards global harmonization and mutual recognition are currently being undertaken within the 19 UN Regulations World Forum for Harmonization of Vehicle Regulations (UN/WP29). A proposal seeking a 2018 timeframe for IWVTA implementation is currently under discussion.

International Whole Vehicle Type Approval (IWVTA) advances mutual recognition from the equipment and parts level to approval of the “whole vehicle”. As IWVTA related efforts continue to promote the facilitation of vehicle imports/exports, we look forward to the utilization of this framework by ASEAN members.

IWVTA will promote harmonization and enhance standards adoption at the higher level. 16

Human Resource Development Activities Beyond supporting the economies in which they are embedded, JAMA member companies believe in the long-term, critical importance of human resources.

Daihatsu Global Management Training program in Japan 2014 - 2016 As part of this program, P.T. Astra Daihatsu Motor and Perodua dispatch management staff to Daihatsu Japan so Indonesia that they may participate in management training programs Malaysia in Daihatsu overseas production operations. Participants improve management skills from a global perspective while enhancing their knowledge of automobile manufacturing.

Honda Human Capital Development 2013 - 2016 A large number of Honda’s ASEAN employees are sent to Japan each year for skill enhancement training. Honda understands the importance of proper training to the pursuit of quality and the development ASEAN of high-potential future leaders. Upon returning to their home country, trained staff stand a higher chance of being promoted to management level. Isuzu Opening of new Isuzu (Thailand) Manufacturing Training 2016 Center Thailand Since its establishment in 2013, Isuzu Thailand’s Manufacturing Training Center has focused on boosting human resources development to new levels. In order to further enhance our contribution to the development of Thailand’s automotive industry, in April 2016, a new training center was opened.

Mazda Support for Internship Programs 1998 - 2016 Built in partnership with local universities, the Auto Alliance Thailand (AAT) Internship Program provides students with Thailand opportunities to gain knowledge and experience through on- the-job training. The program, highly supportive of Ministry of Education initiatives intended to cultivate skilled workers, contributes to the development of Thailand’s economy.

Mitsubishi Monozukuri Skill Dojo Training (basic and intermediate 2015 level) The MMPC launched its Monozukuri Dojo Training program for Philippines all manufacturing employees (Body Assembly, Body Painting, Vehicle Assembly, Maintenance and Quality). The program aims to help upgrade employees’ skills and knowledge.

Toyota The Graduation Ceremony of Toyota Safe Driving Training 2016 Program Vietnam In Mar 2016, Toyota and Traffic Police organized a graduation ceremony for “Toyota Safety Driving Training Program” to hand over certificate to eight core instructors. This program aims to enhance safety driving knowledge, skills and mindset for users to contribute to reducing traffic accidents in Vietnam. 17

New/Additional Investment and Technology Transfer in the ASEAN

Suzuki (Myanmar) Motor Co., Ltd started production and sales of the Ertiga (MPV).

MYANMAR VIETNAM

LAOS

Honda R&D Asia Pacific Co., Ltd Honda Automobile (Thailand) Co., started construction on a test Ltd started production in its second course worth 1.7 billion baht and automobile plant with annual THAILAND reinforcing its R&D capabilities in production capacity of 120,000 the region. units, investing 17 billion baht. CAMBODIA

Mitsubishi Motors Thailand Toyota showcased its Toyota opened a new R&D proving Motor Asia Pacific Engineering and ground, supporting performance Manufacturing, facility supporting and quality testing of local built R&D, production engineering, vehicles. purchasing and HR development. MALAYSIA

SINGAPORE

Daihatsu built a new engine plant Toyota announced a new with annual production capacity passenger vehicle plant opening in of 140,000 units, investing 15 early 2019 with annual production billion JPY, together with Perodua capacity of 50,000 units, investing (a Daihatsu joint-venture). This 49 billion JPY for the gradual growth engine is energy efficient, whole of the Malaysian market. aluminium with latest technology. 18

Hino increased its equity to 70% and re-launched their activities under Hino Motors Philippines Corporation.

Daihatsu extended the passenger P.T. Astra Daihatsu Motor car engine production line of P.T. has established a multi-facility Astra Daihatsu Motor with annual R&D Center including Design, production capacity of 200,000 Engineering and Indonesia’s first- PHILIPPINES units. ever Test Course with R&D functions.

Toyota opened new engine Toyota opened its Toyota Indonesia plant with production capacity of Academy (TIA), investing 70 billion 216,000 units per year, investing rupiah with a variety of cutting-edge 2.3 trillion rupiah, 400 new jobs facilities, infrastructure and a student will be created. dormitory.

INDONESIA

P.T. Suzuki Indomobil Motor opened new automobile plant with annual production capacity of 250,000 units. 19

Social Contribution Activities Supporting communities and deepening ties represents a vital element of JAMA member companies’ role as good corporate citizens. Road Safety

P.T. Astra Daihatsu Motor (ADM) promoted safety In 2015, Honda Vietnam Co. provided safe-driving driving and raised student’s awareness through the training to members of government agencies, private provision of books and educational games, using and public companies, and customers across the “Daihatsu Smart Car” . country.

Charity Event

Since 1990, Toyota Classics has held 191 classical concerts, promoting classical music in the Asian region. All ticket sales were donated to local charities. For more information: www.ToyotaClassics.asia

SUPPORTING RECOVERY FROM NATURAL DISASTERS

The Honda Khiang Khang Thai Fund and Utokapat P.T. Nissan Motor Indonesia (NMI) donated food and Foundation co-organized a project to build rock check cleaning supplies to victims of the Mt. Sinabung dams, grow vetiver grasses and nurture other local plants. eruption in Indonesia. The project helps support the local community in dealing with issues related to drought, flood, and water supply resources for agriculture and household use. 20

Environment Protection

Before After

P.T. Krama Yudha Tiga Berlian Motors (KTB), authorized distributor for Mitsubishi Motors and Mitsubishi FUSO Truck & Bus in Indonesia, creating a garden to improve the environment surrouding its office.

Toyota established Biodiversity Learning Center in Thailand. Toyota aims to create sustainable plants in forest-like settings, helping to maximize the synergy between auto production and the natural environment.

Support for Education

Toyota established Biodiversity Learning Center in Thailand. Toyota aims to create sustainable plants in forest-like settings, helping to maximize the synergy between auto production and the natural environment.

Perodua, a Daihatsu joint-venture company, held its P.T. Nissan Motors Indonesia (NMI) donated a total of 11 Junior Safety Squad contest aimed at creating higher used cars and 40 engines to engineering and vocational safety awareness at home and school. schools in Indonesia for educational purposes. 21

Social Contribution Activities Support for Education

P.T. Suzuki Indomobil Motor donated engines and educational materials to vocational school across Indonesia.

Clean Up Activities

Hino Motor Sales (Thailand) Ltd., helped clean up Auto Alliance (Thailand) Co., Ltd, a joint venture Payun beach in Rayong provine, picking up 900kg of company of Mazda Motor Corporation, help clean up garbage in total. Wornapa and Bangsaen Beach and Public Park and repaired the facilities in playgrounds.

Donation

Hino Motors Manufacturing (Thailand) Ltd., presented Since 1993, Isuzu Group Foundation funds a broad range the Thai Royal Family with a medium-duty truck in of activities, including donations to the royal family, honor of the 50th anniversary of its founding. management of scholarship programs, and initiative for promoting automobile technologies in Thailand. 22

Life and Health support

P.T. Krama Yudha Tiga Berlian Motors (KTB) donated Evacuation Vehicle and Water Truck, enabling the vehicles to be used in support of evacuation and fresh water distribution.

Isuzu Thailand has worked to help schools construct wells, enhance water purification, and facilitate improved water supply systems for school children.

Event sponsor Plant Tour

Mazda Sales Thailand provided the 4th consecutive P.T. Suzuki Indomobil Motor (Indonesia) provided year of sponsorship for sports promotion. automotive education-based experiences for students from vocational schools, high schools, junior highs, and elementary schools.

For details, please visit JAMA’s website or subscribe to our on-line news. JAMA’s website : http://www.jama-english.jp/asia/index.html JAMA’s on-line news subscription : http://www.jama-english.jp/subscribe.html Head Office Jidosha Kaikan, Shiba Daimon 1-chome, Minato-ku 105-0012 Japan Tel: +81-3-5405-6126 Fax: +81-3-5405-6136 http://www.jama.or.jp/

Singapore Branch North American Office 143 Cecil Street, 1050 17th Street, N.W., Suite 410 #09-03/04 GB Bldg. Washington, DC 20036-5518, USA Singapore 069542 Tel: +1-202-296-8537 Tel: +65-6221-5057 Fax: +1-202-872-1212 Fax: +65-6221-5072 http://www.jama.org/

Beijing Representative European Office Office Avenue Louise 287 Unit 1001B, Level 10, 1050 Bruxelles, BELGIUM China World Office 2 Tel: +32-2-639-1430 No. 1 Fax: +32-2-647-5754 Jian Guo Men Wai Avenue Beijing, China 100004 Tel: +86-10-6505-0030 Fax: +86-10-6505-5856

KAWASAKI HEAVY INDUSTRIES, LTD. SUZUKI MOTOR CORPORATION DAIHATSU MOTOR CO., LTD. Kobe Head Office: Head Office: Head Office: Kobe Crystal Tower, 1-3, Higashi 300, Takatsuka-cho, Minami-ku, 1-1, Daihatsu-cho, Ikeda, Osaka 563-8651 Kawasaki-cho 1-chome Chuo-ku, Hamamatsu, Shizuoka 432-8611 Tel: +81(72)751-8811 Kobe, Hyogo 650-8680 Tel: +81(53)440-2061 Tokyo Office: Tel: +81(78)371-9530 Tokyo Branch: Shinwa Bldg, 2-10, Nihonbashi Hon-cho, Tokyo Head Office: Suzuki Bldg, Higashi-shimbashi 2F, 2-Chome, Chuo-ku, 2-2-8 Higashi-shinbashi, Tokyo 103-0023 1-14-5, Kaigan, Minato-ku, Tokyo 105-8315, Japan Minato-ku, Tokyo 105-0021 Tel: +81(3)4231-8856 Tel: +81(3)5425-2158 http://www.daihatsu.com/ Tel: +81(3)3435-2111 http://www.khi.co.jp/ http://www.globalsuzuki.com/

FUJI HEAVY INDUSTRIES LTD. TOYOTA MOTOR CORPORATION Head Office: MAZDA MOTOR CORPORATION Head Office: Ebisu Subaru Bldg 1-20-8 Head Office: 1, Toyota-cho, Toyota, Aichi 471-8571 Ebisu, Shibuya-ku, 3-1, Shinchi, Fuchu-cho, Aki-gun Tel: +81(565)28-2121 Tokyo 150-8554 Hiroshima 730-8670 Tel: +81(3)6447-8000 Tokyo Office: Tel: +81(82)282-1111 http://www.fhi.co.jp/ 4-18, Koraku 1-chome, Bunkyo-ku, Tokyo Head Office: Tokyo 112-8701 NBF Hibiya Bldg, 1-7, Tel:+81(3)3817-7111 Uchisaiwai-cho 1-chome, Chiyoda-ku, http://www.toyota.co.jp/ Tokyo 100-0011 Tel: +81(3)3508-5031 http://www.mazda.com/ HINO MOTORS, LTD. 1-1, Hinodai 3-chome, Hino, Tokyo 191-8660 Tel: +81(42)586-5111 UD TRUCKS CORPORATION http://www.hino.co.jp/ 1-1, Ageo, Saitama 362-8523 MITSUBISHI MOTORS CORPORATION Tel: +81(48)781-2301 33-8, Shiba 5-chrome, Minato-ku, http://www.udtrucks.co.jp/ Tokyo 108-8410 http://www.udtrucks.com/ Tel: +81(3)3456-1111 HONDA MOTOR CO., LTD. http://www.mitsubishi-motors.co.jp/ 1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo 107-8556 Tel: +81(3)3423-1111 http://www.honda.co.jp/ YAMAHA MOTOR CO., LTD. MITSUBISHI FUSO TRUCK & BUS CORPORATION Head Office: 1-2, Kashimada 1-Chome, 2500, Shingai, Iwata, Shizuoka Saiwai - Ku, 438-8501 ISUZU MOTORS LIMITED Kawasaki, Kanagawa 221 - 0058 Tel: +81(538)32-1115 26-1, Minami-Oi 6-chome, Shinagawa-ku, Tel: +81(44)330-7700 Tokyo Office: Tokyo 140-8722 http://www.mitsubishi-fuso.com 1-1 Marunouchi 2-chome, Tel: +81(3)5471-1141 Chiyoda-ku, Tokyo 100-0005 http://www.isuzu.co.jp/ Tel: +81(3)5220-7200 http://www.yamaha-motor.co.jp/

NISSAN MOTOR CO., LTD. 1-1, Takashima 1-chome, Nishi-ku, Yokohama-shi, Kanagawa 220-8686 Tel: +81(45)523-5523 Former Member http://www.nissan-global.com/EN/index.html & Friend of JAMA

GENERAL MOTORS JAPAN, LTD. Head Office: 12-8 Higashi-shinagawa 4-chome, Shinagawa-ku, Tokyo 140-8687 Tel: +81(3)6711-5700 http://www.gmjapan.co.jp/

Printed in September 2016