South Korean media: Toyota will also use Chinese parts in the Southeast Asian market!
On September 12, the South Korean media "Chosun Ilbo" published an article stating that as Chinese cars increase their market share in the Southeast Asian market, which is called "the backyard of Japanese cars," Toyota will purchase Chinese-made parts from its factory in Thailand. This strategy aims to respond to the impact of low-cost environmentally friendly cars by replacing Japanese parts with Chinese parts, thus reducing production costs by up to 30%.
The rise of Chinese electric vehicles is having a significant impact on the supply chain structure of the Japanese automotive industry. Since the 1960s, the Japanese automotive industry has sought to expand overseas through a "win-win" model between automakers and parts manufacturers.
The "Nikkei" reported that Toyota will equip parts from Chinese companies on its new electric and hybrid vehicles produced in Thailand, its largest base in Southeast Asia, starting in 2028.
Toyota plans to expand the procurement of price-competitive Chinese parts. Discussions included sound-absorbing materials in interior components, molds, and resin materials for noise insulation.
Currently, Toyota purchases interior parts and other components from the Thai auto parts manufacturer Summit Group. This time, Toyota plans to procure parts from a joint venture between Summit Group and a Chinese sound-absorbing material company.
The Chinese parts used in Toyota's Thai factory are currently used in Toyota's local production in China. Toyota's interest in Chinese parts stems from their highly competitive prices. In Thailand, Japanese car manufacturers once held a 90% market share, but this share has recently dropped to 70%. At the same time, Chinese car manufacturers have rapidly captured the market with their low prices, increasing their market share to 16%.
A relevant person from Toyota said, "Our goal is to reduce production costs by 30% compared to before."
As Japan's largest automaker, Toyota adjusts its supply chain strategy, which seems to also affect Japanese companies' strategies. Analysts predict that if the trend of shifting to local procurement to improve price competitiveness continues to grow, Japanese parts manufacturers may also face a survival crisis.
Original: www.toutiao.com/article/1843043096142912/
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