Japanese Automakers move production bases to Asia

Japanese automakers are increasing exports from production bases in other Asian countries to take advantage of better worker skills and tariff-free arrangements, the Nikkei reported, without citing sources.

Asia replaced North America as the largest overseas production base for Japanese car firms in 2006 with output reaching 4.13 mln vehicles, the business daily said.

Honda Motor Co Ltd is boosting this year's exports from Thailand to Australia and New Zealand by 40 pct, or 47,000 units, while Nissan Motor Co Ltd (nasdaq: NSANY - news - people ) is doubling exports of its Tiida subcompact from Thailand to Australia to 10,000, the Nikkei said.

Last year, Toyota Motor Corp exported 100,000 IMVs (Innovative International Multi-purpose Vehicles) to more than 90 countries from Thailand and it will step up exports from this year.

Suzuki Motor Corp plans to triple output capacity to 300,000 vehicles a year at its second Indian assembly plant in 2008. Of the total, half will be shipped to Europe and the Middle East, the Nikkei said.

source: Forbes.com

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