Promoting the Sound Development - JAMA

2008

2

The history of steadily expanding cooperative ties between member companies of the Japan Automobile Manufacturers Association (JAMA) and their ASEAN partners is now close to half a century old.

Those years were marked by some difficult times―the Asian economic crisis of 1997, for example―but throughout, JAMA members remained firmly committed to ASEAN, consistently striving, through automobile production, sales, and exports, to advance investment, create jobs, and transfer technology. This booklet outlines the more recent activities of JAMA and its member companies in the ASEAN region.

In 2007, new vehicle sales in the ASEAN market (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam) totalled 1.87 million units, a 5.9% increase over the previous year. Sustained expansion of the ASEAN auto industry and market is anticipated in the years ahead along with high economic growth, and the region is expected to play an increasingly critical role in the global market as a center of robust growth.

Also in 2007, JAMA member companies and their local partners in ASEAN produced 2.08 million motor vehicles, exported 653,636 units, and provided employment to 85,491 persons.

The past several years have seen the motor industries in ASEAN neighboring countries increasing their competitive strength, which underscores the urgency of greater global competitiveness for ASEAN's automotive sector. With this goal in mind, there are high hopes that ASEAN will further promote regional integration at the earliest possible time.

ASEAN is making bold moves to surmount the hurdles on the path to greater growth. Such moves include the abolition of regional tariffs, harmonization of automotive technical regulations, mutual recognition of certification, the streamlining of customs procedures and distribution systems, the fostering of supporting industries and human resources, the promotion of safety, greater environmental protection, and other strategies aimed at promoting sound and sustainable mobility.

In this emerging era of new challenges, JAMA members intend to strengthen their ties with ASEAN, moving forward hand in hand with their local partners to support the continued advancement of the automobile industry and the economic wellbeing of this vital corner of the world.

Promoting the Sound Developmentof the ASEAN Automotive Industry

F o r e w o r d

3

C o n t e n t s

Foreword 2

Contents 3

Production Facilities in ASEAN in 2007& Related Data by Country 4

Statistics 10

JAMA Activities in ASEAN 12

JAMA Members' Recent Activitiesin ASEAN 15

About JAMA 19

B

Mak

assa

r St

r.

J a w a S e a

Sumatera

.

Jawa

Sulawesi

Bali

Lombo

k

Sumba

wa

Sumba

Flore

s

L e s s e r S u n d a I s .

Gr e a t e r S u n d a I s .

Borneo(Kalimantan)

CelebesSea

Belitung

Bangka

INDONESIABandung

Surabaya

Denpasar

Semarang

Yogyakarta

Kuala Lumpur

Ujung Pandang(Makassar)

Medan

Padang

Kuantan

Johor Bahru

Samarinda

Balikpapan

Manado

Banjarmasin

SINGAPORE

4

■AUTOMOBILE PRODUCTION COMPANIES　　●COMPONENTS MANUFACTURING COMPANIES

11

10

12

13

1

9

8

7

6

5

4

2

3

Production Facilities in ASEAN in 2007 & Related

I n d o n e s i a

Jan.92

Dec.82

Feb.99

Sep.74

Jun.73

May.95

Apr.96

1990

Apr.71

Feb.83

Apr.97

Aug.73

P. T. Astra Daihatsu Motor

PT. Hino Motors Manufacturing Indonesia

P. T. Honda Prospect Motor

P. T. Isuzu Astra Motor Indonesia

P.T. Krama Yudha Tiga Berlian Motors

P. T. Nissan Motor Indonesia

P. T. Astra Nissan Diesel Indonesia

P. T. Indomobil Suzuki International

PT. Toyota Motor Manufacturing Indonesia

P. T. Mesin Isuzu Indonesia

P. T. Asian Isuzu Casting Center

Mitsubishi Krama Yudha Motors & Manufacturing

Daihatsu

Hino

Honda

Isuzu

Mitsubishi Fuso

Nissan

Nissan Diesel

Suzuki

Toyota

Isuzu

Isuzu

Mitsubishi

Mitsubishi Fuso

6,052

320

2,800

428

─

650

82

3,800

5,332

175

362

─

─

200

─

50

75

─

40

4.8

140

72 Engines

50

6.6 tons

─

─

INR 338,850

USD 47.8

USD 70

INR 92,000

IDR 12,000

USD 56

INR 62,840

USD 45

INR 19,524

INR 13,200

INR 107,500

IDR 11,451

Terios, XENIA, Gran Max

Trucks and buses

Jazz, CR-V

Assembly of Asia-market cars and small-sized CVs

Canter, FUSO

Grand Livina, Livina, X-TRAlL, Serena

Trucks and buses

Grand Vitara, APV, Carry, Futura, Swift, SX4

Innova, Kijang Innova, Dyna, Fortuner, Engines

Diesel engines and related parts

Forged parts

Pressed parts and engines

Engines, Body parts

61.75%

90%

51%

44.94%

18%

75%

12.5%

90%

95%

36.7%

18.6%

0%

32.28%

Est. EmployeesAnnual ProdCap. (x 1,000)Company Name Capitalization

(x 1 milliion)Manufacturer ProductsEquity Stake

10

2

113 KarawangKarawang

BekasiBekasi

Bukit IndahBukit Indah

JakartaJakarta12 13

1 54 6987

Jakarta

Rawang Pekan

Shah Alam

Melaka

Kuala Lumpur

arStr. of M

alacca

Sumatera

Ma

l ay

Pe

n.

Borneo(Kalimantan)

Gulf ofThailand

Palawan

BRUNEI

MALAYSIABandar Seri Begawan

Sandakan

Nha TrangPhnom Penh

Ho Chi Minh(Saigon)

Can Tho

Rach Gia

Sihanoukville

Medan

Phuket

George Town(Penang)

Ipoh

Songkhla

Kota Bharu

Kuantan

Kuala Lumpur

5

M a l a y s i a

1

6

5

4

2

3


Data by Country

Malaysia

Indonesia

Feb.93

Nov.00

Jul.96

Jan.05

May 74

May 68

Perodua Manufacturing Sdn. Bhd.

Honda Malaysia Sdn. Bhd.

Isuzu Hicom Malaysia Sdn. Bhd.

Mercedes-Benz Malaysia Sdn. Bhd.

Tan Chong Motor Assemblies Sdn. Bhd.

Assembly Services Sdn. Bhd.

Daihatsu

Honda

Isuzu

Mitsubishi Fuso

Nissan

Toyota

6,486

1,600

973

─

1,570

3,270

200

30

60

─

70

─

RM 140

RM170

RM 100

RM 134.7

RM 1

RM 7.5

Kancil, KENARI, MYVI, VIVA

City, Civic, Accord, CR-V

Assembly of small and medium-sized CVs, medium and large-sized buses

Canter, FUSO

Grand Livina, Tiida, Vanette, Serena, X-TRAIL

Camry, Corolla, Hiace, Hilux, Vios, Innova, Fortuner, Engines

─

51%

51%

0%

5.58%

UMWT100%



Karawang

Bekasi

Bukit Indah

JakartaRawangRawang PekanPekan

Shah AlamShah Alam

MelakaMelaka

6

2

1

4 Kuala LumpurKuala Lumpur5

3

Mindanao

Luzon

South ChinaSea

SuluSea

Phil ippineSea

Palawan

P

Babuyan Is.

Samar

Leyte

Panay

Negros

Mindoro

BRUNEI

CebuBacolod

Iloilo

Baguio

DavaoZamboanga

Sandakan

PHILIPPINES

Manila

6

Th e P h i l i p p i n e s



11

12

1

6

7

8

9

10

5

4

2

3

13

Mar.75

Oct.90

Aug.95

Feb.04

May 72

Apr.82

Apr.54

Dec.81

Aug.88

Nov.96

Jan.73

Aug.90

Pilipinas Hino Inc.

Honda Cars Philippines Inc.

Isuzu Philippines Corporation

Ford Motor Co. Philippines Inc.

Mitsubishi Motors Philippines Corporation

Nissan Motor Philippines, Inc.

Universal Motors Corporation

Columbian Motors Corp.

Toyota Motor Philippines Corp.

Isuzu Autoparts Manufacturing Corporation

Asian Transmission Corp.

Toyota Autoparts Philippines Inc.

Hino

Honda

Isuzu

Mazda

Mitsubishi

Mitsubishi Fuso

Nissan

Nissan Diesel

Toyota

Isuzu

Mitsubishi

Toyota

170

700

590

727

720

─

325

130

68

1,929

391

430

1,045

─

15

15

50

28

─

5

3

0.4

19

150

─

─

PHP 187.5

PHP 1,030

PHP 1,000

─

PHP 1,640

PHP 1,845

PHP 154

PHP 1,538

PHP 1,549

PHP 442

PHP 350.7

PHP 1,000

Trucks and buses

City, Civic

Assembly of buses and small and medium-sized CVs

Mazda3, Tribute

L300, Adventure

Canter, FUSO

Sentra, X-TRAIL

Frontier, Patrol, Urvan

Trucks and buses

Corolla, Innova, Vios

Transmissions

Processing and assembly of transmissions

Transmissions, Continuous velocity joints

15%

74.24%

35%

0%

51%

0%

5.36%

0%

1.55%

34%

100%

84.71%

95%



8 5

1

9

7 103 411 12 13

2

Metro ManilaMetro Manila

LagunaLaguna

6 RizalRizal

Santa RosaSanta Rosa

MaktiMakti

CanlubangCanlubang

BangkokPathumthani

Ayutthaya

Chonburi

Rayong

Samutprakarn

Samrong-Tai

Mekong

Ma

l ay

Pe

n

Hainan

Gulf ofThailand

Gulf ofTongking

Gulf ofMartaban

South ChinaSea

AndamanSeaA

ndam

an I

s.

Nicobar Is.

Palawan

Tonle Sap

BRUNEI

Haikou

Sandakan

Da Nang

Qui Nhon

Nha Trang

HueUdon Thani

NakhonRatchasima

UbonRatchathani

(Rangoon)Yangon

Phnom Penh

Chiang MaiLuang Prabang

TakMoulmein

Ho Chi Minh(Saigon)

Can ThoRach Gia

Sihanoukville

Banda Aceh

Phuket

George Town(Penang)

Ipoh

Songkhla

Kota Bharu

Vientiane

VIETNAM

LAOS

CAMBODIA

THAILAND

MYANMAR(BURMA)

Bangkok

7

T h a i l a n d


Data by CountryThePhilippines

Thailand

11

12

1

6

7

8

9

10

5

4

2

3

(1) Honda opens its second auto plant in the latter half of 2008 and expands the combined annual production capacity in Thailand to 240,000 units.

13

14

15

May 62

Dec.00

Apr.66

Nov.95

Jan.87

Jan.04

Nov.73

Aug.62

Oct.62

May 88

Jul.87

Sep.87

Dec.94

Jul.87

Feb.78

Hino Motors Manufacturing (Thailand) Ltd.

Honda Automobile (Thailand) Co., Ltd.

Isuzu Motors Co., (Thailand) Ltd.

Auto Alliance (Thailand) Co., Ltd.

Mitsubishi Motors (Thailand) Co., Ltd.

Mitsubishi Fuso Truck (Thailand) Co., Ltd.

Siam Nissan Automobile Co., Ltd.

Siam Motors & Nissan Co., Ltd.

Toyota Motor Thailand Co., Ltd.

Thai Auto Work Co., Ltd.

Isuzu Engine Manufacturing Co., (Thailand) Ltd.

Thai International Die Making Co., Ltd.

IT Forting (Thailand) Co., Ltd.

Siam Toyota Manufacturing Co., Ltd.

Toyota Auto Body Thailand Co., Ltd.

Hino

Honda

Isuzu

Mazda

Mitsubishi

Mitsubishi Fuso

Nissan

Toyota

Isuzu

Toyota

3,000

4,200

3,238

3,400

3,200

─

1,350

240

12,722

1,100

1,187

689

263

2,260

─

─

120(1)

220

173

190

─

140

439

63

210

─

─

─

─

THB 2,500

THB 5,460

THB 8,500

THB 500

THB 7,000

THB 500

THB 1,930.91

THB 13.33

THB 7,520

─

THB 1,025

THB 100

THB 700

THB 850

THB 10

Trucks and unit production for Toyota

City, Jazz, Civic, Accord, CR-V

Assembly of large and small-sized CVs

BT-50, Ford Ranger

Triton, Strada, Lancer, Space Wagon

Canter, FK, FM, FN

Frontier Navara, Frontier

Teana, Tiida

Camry, Corolla, Hilux VIGO, Yaris, Vios, Wish, Fortuner

Fortuner, VIGO

Diesel engines

Forging of press molds, Press processing

Forged parts

Engines, Engine parts

Stamped parts

80%HM 75.94%

ASH 13.04%

6.7%

45%

99.8%

100%

75%

75%

86.4%

─

1.4%

28%

39.3%

96%

TMT 49%



Metro Manila

Laguna

Rizal

Santa Rosa

Makti

Canlubang

2

11

65

4

14

13

37112 15

BangkokBangkokPathumthaniPathumthani

AyutthayaAyutthaya

ChonburiChonburi

RayongRayong

SamutprakarnSamutprakarn

Samrong-TaiSamrong-Tai8 9

10

Mekong

Hainan

Gulf ofThailand

Gulf ofTongking

Gulf ofMartaban

South ChinaSea

AndamanSea

Palawan

B

Hong Kong

Haikou

KLao Cai

Da Nang

Qui Nhon

Hue

Udon Thani

NakhonRatchasima

(Rangoon)Yangon

Phnom Penh

Bangkok

Moulmein

Can Tho

Mandalay

VIETNAM

LAOS

CAMBODIA

THAILAND

MYANMAR(BURMA)

8

1

6

7

5

4

2

3


Jun.96

Mar.96

Oct.95

Apr.94

Apr.95

Sep.95

Hino Motors (Vietnam) Ltd.

Honda Vietnam Co., Ltd.

Isuzu Vietnam Co., Ltd.

Vina Star Motors Corporation

Vietnam Suzuki Corp.

Toyota Motor Vietnam Co., Ltd.

Hino

Honda

Isuzu

Mitsubishi

Mitsubishi Fuso

Suzuki

Toyota

100

4,800(1)

283

─

─

400

854

─

10

─

─

─

6

18

USD 8.11

USD 62.9

USD 15

USD 16

USD 22

USD 49.14

Trucks and buses

Civic

Assembly of small-sized CVs and RVs

Assembly of Pajero, Lancer, etc.

Canter

Carry, APV

Camry, Corolla, Hiace, Land Cruiser, Vios, Innova

51%HM 42%

ASH 28%

35%

25%

0%

35%

70%



(1) Inclusive motorcycle business.

■AUTOMOBILE PRODUCTION COMPANIES

V i e t n a m

7

6

2

1

543

HanoiHanoi

Ho Chi Minh CityHo Chi Minh City

Yangon

Dong NaiDong Nai

Vinh PhucVinh Phuc

Mekong

Salween

Irrawaddy

HainanBay ofBengal

Gulf ofTongking

Gulf ofMartaban

Haikou

Nanning

Ha NoiHai Phong

Lao Cai

Da Nang

HueUdon Thani

UbonRatchathani

Chiang MaiLuang Prabang

TakMoulmein

Kunming

Vientiane

CHINA

LAOS

THAILAND

MYANMAR(BURMA)

9

SINGAPORE5

6

1

23

4

MALAYSIA

JAMA Singapore

1

1

2

3

4

5

6

Data by Country

1998Myanmar Suzuki Motor Co., Ltd.Suzuki ─ ─ USD 6.7 Carry, Wagon R+60%



1996

1983

1988

2005

2005

1990

Isuzu Motors ASIA Ltd.

Singapore Safety Driving Centre Ltd.

Bukit Batok Driving Centre

NISSAN Asia Pacific Pte. Ltd.

Nissan International Finance Singapore Pte. Ltd.

Toyota Motor Asia Pacific Pte. Ltd.(1)

Isuzu

Honda

Honda

Nissan

Nissan

Toyota

16

308

328

20

8

400

USD 187

SGD 2

SGD 5

USD 10

USD 5

SGD 6

Buying and selling of complementary parts in the region. Works as holding company for regional business entities and their management.Education at the time of obtaining motorcycle riding or automobile driver's licenses and safety training for companies and communities.Education at the time of obtaining motorcycle riding or automobile driver’s licenses and safety training for companies and communities.Regional marketing and sales, franchise management (training, CS improvement, VI compliance), public relations and order processing center (production orders). Settlement service, risk management, treasury consulting service, group finance and payment factory.

Support for marketing operations in Asia (excluding China).

100%

27.5%

26%

100%

100%

100%

Est. EmployeesCompany Name Capitalization(x 1 milliion)Manufacturer FunctionEquity

Stake

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

S i n g a p o r e

Vietnam

Myanmar

■AUTOMOBILE PRODUCTION COMPANY

M y a n m a r Singapore

●OTHER FACILITIES

Hanoi

Ho Chi Minh City

1 YangonYangon

Dong Nai

Vinh Phuc

10

Exports

Production

Production of passenger cars, trucks and buses by JAMA member companies and their local partners in ASEAN totalled 2,076,965 units (including export units) in 2007, an increase of 11.7% from the previous year.

Statistics

Exports of passenger cars, trucks and buses produced in ASEAN by JAMA member companies and their local partners climbed to 653,636 units in 2007, an increase of 16.2% over the previous year. Of those, some 542,000 units (83%) were bound for outside ASEAN, while some 112,000 units (17%) were intra-ASEAN exports. By comparison, that ratio in 2006 was 65% to 35%.

0

100,000

200,000

700,000

600,000

500,000

400,000

300,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2005 2006 20072004

Units exported

Units produced

1994

993,692

27,544 33,806 42,370

73,990 92,523

127,733 126,037110,252

139,096

212,014263,923

405,511

653,636

562,284

1,242,2781,307,269

1,217,850

1,096,065

1,273,082

1,471,998

1,748,939

2,027,123

1,859,391

2,076,965

405,148

738,053

997,940

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

ASEAN Total2,200,000

2,000,000

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

◆ ◆ ◆ ◆

◆

◆ ◆ ◆

◆

◆

◆

◆

◆

◆

11

Employment & Number of Facilities

Sales

Sales in the ASEAN market of new passenger cars, trucks and buses produced by JAMA member companies and their local partners in ASEAN totalled 1.56 million units in 2007, in an overall market of 1.87 million units sold. This underscores the fact that JAMA members and their local partners are key players in the ASEAN market.

Plant facilities of JAMA member companies and their local partners in ASEAN totalled 61 in 2007, and employment at those facilities reached 85,491 persons. Both figures have generally been on a rise since 2003.

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

70

60

50

40

30

20

10

02003 2005 2006 20072004

No. of persons employed

No. of facilities

Units sold

Thailand Indonesia Malaysia Philippines Vietnam Singapore

Employment No. of facilities

600,000

500,000

400,000

300,000

200,000

100,000

0

◆

◆ ◆

◆ ◆ ◆

584,676

342,911

434,591

98,417

38,53859,865

49,871

60,77368,291

78,30585,491

50 56

58

65 61

12

JAMA Activities in ASEAN

Bilateral and Multilateral EPAs with ASEAN Countries

JAMA has advocated the establishment of economic partnership agreements (EPAs) with ASEAN countries and the region as a whole, and actively supported negotiations by the Japanese government in that direction. In April 2008, the signing of a comprehensive EPA between the ten ASEAN countries and Japan was completed. JAMA is confident that expanded trade and investment between Japan and ASEAN countries as facilitated by EPAs will strengthen the interrelationships among the automobile industries in those countries and thereby promote the further development of ASEAN’s automotive sector as a whole.

The 10th AMEICC Working Group on the Automobile Industry (WGAI) Meeting

Operating under AEM-METI1, the AMEICC (AEM-METI Economic and Industrial Cooperation Committee) WGAI meets annually so that government and industry players can exchange opinions on issues facing the ASEAN automobile industry. Held in Jakarta in September 2007, the tenth meeting was attended by 112 participants. During the meeting JAMA advised on the establishment of whole vehicle type approval (see page 14) through the adoption of UN/ECE regulations, so as to simplify and facilitate certification procedures and ensure vehicle quality; it also explained the roadmap for whole vehicle type approval, at the same time offering its cooperation in regard to following that roadmap. Furthermore, while JAMA advocated the harmonization of fuel specifications as promoted by the Worldwide Fuel Charter and EU regulations, it was noted that moves to introduce biofuels to the market should consider the safety of in-use vehicles. The meeting also reported that the Euro 2 fuel specifications recommended by JAMA for the ASEAN Automotive Federation membership had been used as reference by the respective governments in ASEAN in their drafting of specification for Euro 2. The hope is that all countries will eventually adopt the Euro 4 fuel specifications. Lastly, individual member countries presented updates on domestic market trends and industry policies. In 2007, 45 projects were implemented under various AMEICC working groups, with Japan contributing the assistance of 22 experts to those initiatives.1ASEAN Economic Ministers-Ministry of Economy, Trade and Industry (Japan)

13

The 12th Asian Regulation & Certification Experts (RACE) Meeting

The 7th AAF/TC3-JAMA Meeting

To contribute industry input on technical harmonization issues to the JASIC/Government & Industry Meeting in Manila in November 2007, JAMA took the lead in organizing the RACE meeting (also in Manila) one day prior to the G/I forum. At the meeting JAMA reported that Japan had officially announced that an international whole vehicle type approval (see page 14)―which would enable the mutual recognition of such certification among all contracting parties―be proposed to UN/WP29 by 2015. This news greatly encouraged the promotion of technical harmonization by ASEAN countries. During the discussion on discrepancies between unique national regulations and the international UN/ECE regulations, JAMA asserted that the former can be accepted as a temporary alternative to the latter. JAMA also conducted a survey on other obstacles to the establishment of whole vehicle type approval in individual ASEAN countries, in order to provide an empirical basis for the formulation of strategies for its implementation throughout the region.

As part of its continuing efforts to promote closer ties with the automotive industries in ASEAN, JAMA organized in Ho Chi Minh City in January 2007 the seventh bilateral meeting between automotive products certification experts from Japan and ASEAN automotive associations. Three working groups (WG1 on the environment, WG2 on certification, and WG3 on safety regulations) took part in the meeting and keynote speeches were made by JAMA experts. In their speeches, the experts recommended a set of biofuel specification, priority list of UN/ECE safety regulation, and type approval certification system for future harmonization; the use of a common application document for whole vehicle type approval (see page 14) in ASEAN member countries; and the provision of reasonable lead times to ensure the smooth implementation of new vehicle regulations. These various recommendations were helpful to ASEAN working group members in reaching a positive consensus on proposing a number of technical harmonization agendas for consideration by the relevant ASEAN authorities.

14

ManufacturersUsers* More efficient & speedier

vehicle development * Greater efficiency in

obtaining type approval * Safer and environmentally

friendlier vehicles* Wider choice of imported cars* Lower vehicle prices

Governments* More efficient international

distribution of vehicles* More efficient vehicle

inspection* More efficient regulatory

formulation & upgrading

Enhanced productivity and reduced vehicle development costs, also promoting innovations in safety and environmental technologies.

JAMA Activities in ASEAN

Reference: What is the whole vehicle type approval?

JAMA is currently encouraging support from all ASEAN member states for whole vehicle type approval. This system enables the mutual recognition of approvals (MRA) of whole vehicles among different countries through the adoption of UN/ECE (United Nations Economic Commission for Europe) regulations under the 1958 Agreement. To date, the mutual recognition of approvals based on UN/ECE regulations has applied only to vehicle parts and systems.

The merits of worldwide harmonization of technical regulations and MRA include the resulting standardization of vehicle design specifications and greater commonization (or shared use) of parts, reduced development and production costs, and a simplification and facilitation of certification procedures in all countries concerned. Progress in these areas will expand consumer purchasing options and promote the further development of the automotive industry.

JAMA has recommended that the ASEAN countries sign the 1958 Agreement on MRA and adopt the UN/ECE regulations governing relevant parts and systems. The next step is the adoption of whole vehicle type approval, which will lead to the global application of the “Tested once, accepted everywhere” principle. Whole vehicle type approval will, in turn, pave the way for the more widespread use of vehicles incorporating cutting-edge safety and environmental technologies and thereby play an important role in the promotion of international trade.

＋

UN/ECE CertificateActual Vehicle

VehicleSpec.

Mutual Recognitionof Vehicle Approval

Seats

Tires

Safety Glazing

Mirrors

Front Lamps

etc.

Vehicle Certificate

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

How Whole Vehicle Type Approval Works

Merits of Worldwide Harmonization of Technical Regulations and MRA

15

2006

2006

2006

2008

2007

2008

2005

2006

2005

2006

2007

2007

2007

2005

2005

2007

Thailand

Thailand

Vietnam

Thailand

Malaysia

Indonesia

Thailand

Indonesia

Malaysia

Thailand

Indonesia

Indonesia

Thailand

Indonesia

Thailand

Thailand

Honda

Isuzu

Mazda

Mitsubishi

Mitsubishi Fuso

Nissan

Toyota

Honda establishes in April a new manufacturing company in Thailand for the production of

stamped body panel service parts. Production start-up is scheduled for June 2007.

Honda expands its annual engine production capacity in Thailand to 300,000 units. In

addition, a new engine components manufacturing factory will be operational by April

2007.

In August Honda launches operations in Vietnam with production of the Civic.

Honda begins production of its second auto plant in the latter half of

2008. Annual production capacity there will eventually expand to

120,000 units and employment to about 2,200 persons. With the

120,000-unit annual production capacity at its existing plant,

Honda's combined annual production capacity in Thailand will reach

240,000 units. Investment in its second plant totals 6.2 billion bahts.

In October Isuzu acquires additional stock in Malaysian Truck and Bus (20%→51% equity),

changing the company name to Isuzu Hicom Malaysia and strengthening production operations there.

In April Isuzu acquires additional stock in P.T. Pantja Motor (12.5%→44.94% equity), changing

the company name to P.T. Isuzu Astra Motor Indonesia and strengthening commercial vehicle

operations there.

Mazda establishes Mazda South East Asia, the liaison company for its ASEAN business

operations, in Thailand. Investment totals 11 million bahts.

Mazda establishes the sales subsidiary PT. Mazda Motor Indonesia in Indonesia. Investment

totals 400 million yen.

Mitsubishi's new and exclusive sales network in Malaysia, Mitsubishi Motors Malaysia Sdn.

Bhd., a joint venture company between Mitsubishi Corporation and Edaran Otomobil

Nasional Berhad (EON), is established in January and starts sales in July 2005.

Mitsubishi increases its annual production capacity in Thailand from 180,000 to 200,000

units.

Mitsubishi enters into capital participation of 2% in P.T. Krama Yudha Tiga Berlian Motors

(KTB).

Mitsubishi Fuso enters into capital participation of 18% in P.T. Krama Yudha Tiga Berlian

Motors (KTB) and 32.3% in Mitsubishi Krama Yudha Motors and Manufacturing (MKM) to

strengthen both companies' bases.

Siam Nissan Automobile Co., Ltd. (SNA) begins exporting the

Nissan Frontier Navara pickup truck to 120 markets in September.

SNA invested around US$ 760 million in 2005-2007 to increase

production capacity and upgrade production facilities in order to

make Thailand global production base for Nissan.

Toyota announces in April that its Karawang, Indonesia plant production capacity will expand

to about 100,000 vehicles annually.

Toyota announces in April the construction of a new plant in Thailand and expanded

production capacity there to about 550,000 vehicles annually.

In March Toyota Motor Thailand Co. Ltd. (TMT) opens its Ban Pho plant, for which

investment totals 15 billion bahts. The plant, with an annual production capacity of 100,000

vehicles, incorporates cutting-edge environmental technologies and is seen, accordingly, as a

model facility in Asia.

New/Additional Investment Automaker Year Country

＋

JAMA Members' Recent Activities in ASEAN

16

Production, Sales and Exports

2005-

2007

2006-

2007

2007

2007

2007

2007

2005

2005-

2007

2007-

2008

2008

2005

Malaysia

Indonesia

Thailand

Thailand

Thailand

Thailand

Malaysia

Singapore,

Vietnam,

Indonesia

Indonesia,

Malaysia,

Philippines

Indonesia

Philippines,

Malaysia

Daihatsu

Honda

Isuzu

Mazda

Mitsubishi

Mitsubishi Fuso

Nissan

Suzuki

Toyota

Automaker Year Country

Perodua (joint venture company between Malaysian corporation and

Daihatsu) markets Myvi in May 2005 and ViVA in May 2007.

In Indonesia, PT. Astra Daihatsu Motor (ADM) markets the Terios in

December 2006. ADM markets the Gran Max in November 2007.

In November Honda's cumulative production in Thailand

reaches 1 million units. Honda launched its operations there

in 1984.

In January Isuzu's cumulative production in Thailand reaches 2 million vehicles. This year also

marks the 50th anniversary of the launch of Isuzu's operations in Thailand.

Cumulative production at Auto Alliance Thailand, a Mazda joint venture plant with Ford in

Thailand, reaches 1 million vehicles.

In October Mitsubishi Motors (Thailand) Co., Ltd.

announces that cumulative exports of its pickup

trucks, which began in 1989, reach 1 million units.

The pickups are currently shipped to about 140

countries/regions and have received numerous

awards as well as stellar evaluations over the

years.

In January Mitsubishi Fuso transfers its truck and bus operations in Malaysia to

DaimlerChrysler Malaysia (DCM).

Mitsubishi Fuso carries out a complete model change for its small-size truck in Singapore,

Vietnam and Indonesia.

Nissan launches the all-new Grand Livina, one of

a new family of global models, in April 2007 in

Indonesia, in December 2007 in Malaysia, and in

2008 in the Philippines. In Indonesia, Grand

Livina receives 8 awards by early 2008.

In January Suzuki's Indonesian subsidiary P.T.

Indomobil Suzuki International starts exports of a

slightly modified version of the locally assembled APV.

The vehicle is currently exported to some 60 countries.

Toyota starts production of its IMV (Innovative International Multi-purpose Vehicle) models in

February in the Philippines and in March in Malaysia.


17

2007

2007

Philippines

Thailand

Honda

Nissan

Technology Transfer

Human Resources Development

Social Contribution

2006-

2005

ASEAN/Japan

Thailand

Nissan

Toyota

Honda has steadily instituted environmental management systems at all its facilities to

continuously enhance environmental protection and more thoroughly mitigate the

environmental impact of operations. It has also been proactive in acquiring ISO 14001

(environmental management) certification for its facilities, and this year Honda Cars

Philippines Inc. acquires such certification.

Nissan conducts R&D activities for ASEAN in Thailand. In

April, Nissan South East Asia Co., Ltd. (NSEA) changes its

name to Nissan Technical Center South East Asia Co., Ltd.

(NTCSEA), reflecting Nissan's move to focus more on

R&D for ASEAN.

2005

2006

Indonesia,

Malaysia

Indonesia

Daihatsu In January Daihatsu and its joint venture and affiliated manufacturers provide relief assistance in

Indonesia for victims of the Sumatra earthquake and ensuing Indian Ocean tsunami. Daihatsu donates

over 10 million yen to the Japanese Red Cross Society; P.T. Astra Daihatsu Motor (ADM) donates to

the Indonesian government vehicles worth approx. 1 billion rupiahs; Perodua donates 200,000 ringgits

to Malaysian domestic newspaper publishers.

In May Daihatsu and its joint venture and affiliated manufacturers provide assistance for the victims of

the earthquake in Java, Indonesia. Daihatsu donates 5 million yen to the Japanese Red Cross Society;

Astra Daihatsu Motor donates 500 million rupiahs; Astra International donates an ambulance.




More than 20 manufacturing employees from Nissan's

ASEAN operations take part in its “Master Trainer Program”

(to “train the trainer”) at the Nissan Global Training Center

(GTC) inaugurated in Japan in November. The training

curriculum covers vehicle manufacturing (bodies, assembly,

painting process, etc.), power-train manufacturing, logistics,

quality assurance and plant management and maintenance.

With Toyota's support, Toyota Motor Thailand Co. Ltd.

(TMT) establishes its Asia Pacific Global Production

(training) Center (AP-GPC) to enhance skills and optimize

efficiency in the production of its high-quality vehicles. AP-

GPC will provide training not just for TMT's employees, but

also for members of the Toyota network in the Asia-Pacific

region in order to ensure Toyota's high standards throughout

its operations in the region.

18

2006

2007

2005

2005-

2007

2007

2006

2007

2006

2005

2006

1988-

1992-

Vietnam

Indonesia,

Vietnam

Thailand

Thailand

Thailand

Indonesia

Indonesia

Singapore,

Malaysia,

Philippines,

Thailand

Indonesia

Indonesia

Thailand

Philippines

Honda

Isuzu

Mazda

Mitsubishi Fuso

Nissan

Nissan Diesel

Toyota


The Honda Foundation inaugurates the Honda YES (Young Engineer and Scientist's) Award in Vietnam this

year, with plans to launch it in Cambodia and Laos in April 2008. This award is supported by Honda Vietnam,

the National institute of Science and Technology Policy and Strategy and affiliated universities, and is given to

students who have excelled in the area of science and technology. Honda hopes thereby to help foster future

leaders in the technology and engineering science fields who will contribute to Vietnam's further development.

The Isuzu Heart & Smile Project begins, with support for educational

improvements at six elementary schools in Indonesia (Kupang, West Timor)

carried out as one phase of this project.

In Vietnam (in the northern Dien Bien Phu area), Isuzu provides support for

expanded educational opportunities and an improved educational

environment at 14 elementary and junior high schools.

Mazda donates 18 million bahts to rebuild schools in Thailand destroyed in December 2004 by the

Sumatra earthquake and Indian Ocean tsunami.

Over this two-year period, Mazda donates writing implements and sports supplies to elementary schools

in Thailand (twice yearly) as a participant in Thailand's children's support programs.

Mazda donates a Mazda BT-50 to the Chaipattana Foundation (a nonprofit, social welfare organization) in

Thailand.

Mitsubishi Fuso donates 10 small trucks through its local sales company to support relief operations

following the May earthquake in Java.

Mitsubishi Fuso supports the Urawa Red Diamonds professional soccer team's conduct of the “Heart-full

School” soccer clinics for elementary school students in Asian (including ASEAN) countries as part of the

club's international exchange activities.

Nissan holds the year-long Nissan Design Forum & “Imagination Factory”

exhibition in seven cities in Asia including Singapore, Kuala Lumpur, Manila

and Bangkok. Working in close collaboration with local design councils and

schools, for the first time ever a major auto manufacturer demonstrates the

intricacies of automotive design to aspiring students and the general public.

In January Nissan Diesel donates 20 million yen to the Japanese Red Cross Society for victims of the

Sumatra earthquake and ensuing tsunami, chanelling those funds through the Nippon Keidanren (Japan

Business Federation).

In June Nissan Diesel donates 500,000 yen for the victims of the Java earthquake in May.

In Thailand, as part of local efforts to educate children about road safety, Toyota Motor

Thailand Co., Ltd. (TMT) carries out the White Road Project's Road Safety Campaign.

Conducted since 1988, the campaign uses the “Milky Way & the Gang” mascots to cheerfully

explain road safety to children. In 2004 Toyota opened the White Road Theme Park in central

Thailand where children and their parents can learn about road safety in an enjoyable way.

To help give local communities a better quality of life through improved healthcare services and increased

awareness of the need for quality healthcare, Toyota Motor Philippines Corporation, via its social and

humanitarian arm Toyota Motor Philippines Foundation, Inc. (TMPF),

conducts its Medical and Dental Outreach Program (MDOP) twice a year

for residents of Parañaque and Santa Rosa City, Laguna. This program is

carried out in collaboration with local hospitals and pharmaceutical

companies and provides healthcare services and medicines free of charge.


19

About JAMA

JAMA Member Manufacturers, etc.

Established in 1967, the Japan Automobile Manufacturers Association, Inc. (JAMA) is a nonprofit industry association currently comprised of fourteen manufacturers of passenger cars, trucks, buses and motorcycles in Japan. The globalization of auto manufacturing contributes significantly to local and national economies around the world. As directions in auto manufacturing increasingly influence the world we live in, JAMA takes its role and mission ever more seriously, acting not only to promote increased environmental protection and greater road safety but also to enhance the international business environment. ObjectivesTo promote the sound development of the automobile industry and contribute to social and economic welfare. Activities・Conducts studies and surveys related to automobile production, distribution, trade and use. ・Assists in the rationalization of automobile production, and helps establish policy for the development, improvement and

promotion of production technology. ・Establishes and promotes policies related to automobile trade and international exchange. ・Engages in public interest, international cooperation and other activities involved in meeting its organizational objectives. ChairmanSatoshi AOKI (Chairman, Honda Motor Co., Ltd.) Overseas OfficesNorth American Office (Washington, D.C., U.S.A.) European Office (Brussels, Belgium) Singapore Representative Office Beijing Office (People's Republic of China)

Member Manufacturers

Former Member & Friend of JAMA

●DAIHATSU MOTOR CO., LTD.Head Office: 1-1, Daihatsu-cho, Ikeda, Osaka 563-8651 Tel: +81(72)751-8811Tokyo Office: 2-10, Nihonbashi-Honcho 2-chome, Chuo-ku, Tokyo 103-8408 Tel: +81(3)3279-0813 http://www.daihatsu.com/

●ISUZU MOTORS LIMITED 26-1, Minami-Oi 6-chome, Shinagawa-ku, Tokyo 140-8722 Tel: +81(3)5471-1141 http://www.isuzu.co.jp/

●MITSUBISHI MOTORS CORPORATION 33-8, Shiba 5-chome, Minato-ku, Tokyo 108-8410 Tel: +81(3)3456-1111 http://www.mitsubishi-motors.co.jp/

●MITSUBISHI FUSO TRUCK & BUS CORPORATION

26-1, Minami-Oi 6-chome, Shinagawa-ku, Tokyo 140-8722 Tel: +81(3)5471-1141 http://www.isuzu.co.jp/

●TOYOTA MOTOR CORPORATIONHead Office: 1, Toyota-cho, Toyota, Aichi 471-8571 Tel: +81(565)28-2121Tokyo Office: 4-18, Koraku 1-chome, Bunkyo-ku, Tokyo 112-8701 Tel: +81(3)3817-7111 http://www.toyota.co.jp/

●FUJI HEAVY INDUSTRIES LTD. Subaru Bldg., 7-2, Nishi-Shinjuku 1-chome, Shinjuku-ku, Tokyo 160-8316 Tel: +81(3)3347-2111 http://www.fhi.co.jp/

●KAWASAKI HEAVY INDUSTRIES, LTD.Tokyo Head Office: World Trade Center Bldg., 4-1, Hamamatsu-cho 2-chome Minato-ku, Tokyo 105-6116 Tel: +81(3)3435-2111Kobe Head Office: Kobe Crystal Tower, 1-3, Higashi Kawasaki-cho 1-chome Chuo-ku, Kobe, Hyogo 650-8680 Tel: +81(78)371-9530 http://www.khi.co.jp/

●NISSAN DIESEL MOTOR CO., LTD. 1-1, Ageo, Saitama 362-8523 Tel: +81(48)781-2301 http://www.nissandiesel.co.jp/ ENGLISH/index.html/

●HONDA MOTOR CO., LTD. 1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo 107-8556 Tel: +81(3)3423-1111 http://www.honda.co.jp/

●SUZUKI MOTOR CORPORATIONHead Office: 300, Takatsuka-cho, Minami-ku, Hamamatsu, Shizuoka 432-8611 Tel: +81(53)440-2061Tokyo Branch: 23-2 Daikyo-cho, Shinjuku-ku, Tokyo 160-0015 Tel: +81(3)3356-2501 http://www.globalsuzuki.com/

●HINO MOTORS, LTD.Head Office: 1-1, Hinodai 3-chome, Hino, Tokyo 191-8660 Tel: +81(42)586-5111Tokyo Office: 11-3, Shiba 4-chome, Minato-ku, Tokyo 108-0014 Tel: +81(3)3456-8811 http://www.hino.co.jp/

●MAZDA MOTOR CORPORATIONHead Office: 3-1, Shinchi, Fuchu-cho, Aki-gun, Hiroshima 730-8670 Tel: +81(82)282-1111Tokyo Head Office: Yamato Seimei Bldg., 1-7, Uchisaiwai-cho 1-chome Chiyoda-ku, Tokyo 100-0011 Tel: +81(3)3508-5031 http://www.mazda.co.jp/

●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/

●NISSAN MOTOR CO., LTD. 17-1, Ginza 6-chome, Chuo-ku, Tokyo 104-8023 Tel: +81(3)3543-5523 http://www.nissan-global.com/JP/

●YAMAHA MOTOR CO., LTD.Head Office: 2500, Shingai, Iwata, Shizuoka 438-8501 Tel: +81(538)32-1115Tokyo Office: 1-1 Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-0005 Tel: +81(3)5220-7200 http://www.yamaha-motor.co.jp/

Head OfficeJidosha Kaikan, Shiba Daimon 1-chome, Minato-kuTokyo 105-0012 JapanTEL: +81-3-5405-6126 FAX: +81-3-5405-6136URL: http://www.jama.or.jp/

Singapore Representative Office143 Cecil Street, #09-03/04 GB Bldg. 9FSingapore 069542TEL: +65-6221-5057 FAX: +65-6221-5072

North American Office1050 17th Street, N.W., Suite 410Washington, D.C. 20036, U.S.A.TEL: +1-202-296-8537 FAX: +1-202-872-1212URL: http://www.jama.org/

European OfficeAvenue Louise 287 Box 9, 1050 Brussels, BelgiumTEL: +32-2-639-1430 FAX: +32-2-647-5754

Beijing OfficeUnit 1001B, Level 10, China World Tower 2No.1 Jian Guo Men Wai AvenueBeijing, 100004 ChinaTEL: +86-10-6505-0030 FAX: +86-10-6505-5856

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Promoting the Sound Development - JAMA