Thai automotive industry has strong domestic market and international markets that support the industry. Export of vehicles has increased dramatically after the joining of ASEAN (Association of South-East Asia Nations). Free trade between ASEAN nations eliminates tariff rate on automobiles and some of automotive parts. Free trade between Japan does not increase export of vehicles dramatically like ASEAN markets but JTEPA and AJCEP lower production cost and improved competitiveness in Thai automotive industry. We have found out that FDI can increase productivity through technological transfer. Caves (1974) suggested that there are 2 effects on flow of FDI. FDI will increase productivity through transfer of technologies and increase in competitiveness. Thai automotive industry has more strength over the weakness and more opportunity are waiting in to improve Thai automotive industry in the futures. Thailand is now become automotive production hubs in ASEAN.
Today, the Thailand automotive industry is in the forefront of the world. The company of several carmakers flocks to establish Thailand as car production base. The Toyota Motor Thailand Co., Ltd. is one of the campers is important role in raising the automotive industry in Thailand to be robust into the Detroit of Asia or the "center of a major car of Asia" will bring enormous revenue each year.
Because Toyota Motor Corporation has invested continuously. It became a major manufacturing and exporting cars and parts from around the world at the same time that Toyota has invested a lot in Thailand. I have confidence in the potential of the country and the strength of Thailand's auto industry. Making it the country is faced with a crisis many times Toyota would be like. "Friend in need" that announces confidence on Thailand. President of Toyota Motor Thailand Co., reiterated that Toyota always thought that ‘’Thailand’’ is ‘’Home’’ for us