Plastic in Car Mr.

Kongsak Dokbua
Trend, Application and Their Business Aug 29, 2014
Contents
1. Automotive Industry Overview
2. Trend of Automotive Industry
3. Plastic In Automotive Industry
 Values of Thai Plastics Resin* Conversion Industry: 2013

Footwares
11,502 Million Baht (2.0%)
89 ktons (1.7%)
Others
4,697 Million Baht (0.8%)
Agriculture 34 Ktons (0.6%)
12,105 Million Baht (2.1%) Filament (Non-textile)
110 ktons (2.1%) 8,263 Million Baht (1.5%)
73 ktons (1.4%)
Medicals
13,257 Million Baht (2.3%)
48 ktons (0.9%)

Recreation Total Production of Conversion

18,436 Million Baht (3.3%) Value: 566,841 Million Baht
93 ktons (1.8%) (13,889 Million US$)
Volume: 4,795 Ktons

Housewares
25,769 Million Baht (4.5%)
198 ktons (3.7%)

Safety
29,099 Million Baht (5.2%)
82 ktons (1.6%)

Construction
62,793 Million Baht (11.1%)
641 ktons (12.1%) Packaging
Autoparts EE & 191,683 Million Baht (33.8%)
78,744 Million Baht (13.9%) Appliances 2,309 ktons (43.4%)
361 ktons (6.8%) 110,522 Million Baht (19.5%)
757 ktons (14.2%)

Source: PTIT Data, Modified by PITH, 3 July 2014, *Exclude PET and Nylon fiber
Global Light Vehicle Projection
Up to 2020
Source: IHS
 Global Automotive OEM Market Share
2013
Source: Bloomberg

Toyota, 12%
Other, 22%
PSA, GM, 11%
3%
Honda,
4% VW, 11%

Hyndai-Kia, 9%
Fiat, 5%
Ford, 8% Reault-Nissan,
9%
SAIC, 6%
Global OEM Market Share Projection
2000 to 2020
Source: KPMG
Sales by Segment of Established and Establishing Market
2000 to 2020
Source: KPMG
Areas of Investment in Auto Industries
Up to 2018
Source: KPMG
Expecting Global Market Share by Brand
Up to 2018
Source: KPMG
Expecting Global Market Share by Brand (con’t)
Up to 2018
Source: KPMG
Automotive Industry
“Thailand: Automotive Hub of Asia”

9th largest automobile producer in the world in 2013

14 assemblers with a combined production of more

than 2,500,000 in 2012

High Local content of up to 90%

Target of 3 million units in 2017

 Thailand Ranked #9
2013 Automobile Production

25,000,000

World’s Production: 87 Million

THAILAND: 2.53 Million
20,000,000 #9 in Worlds’ Automotive Production
#1 in ASEAN for Automotive Production

15,000,000

2013 No. 9
2,532,577 units
10,000,000

5,000,000

0
 ASEAN Automotive Industries
Thailand
• Production (2013): 2,457,057 units
• Sales (2013): 1,330,672 unit
• Product champion: 1-ton pick up car & Eco-car

Indonesia
• Production (2013): 1,208,211 units
• Sales (2013):1,218,900 units
• Product champion: PPV car

Malaysia
• Production (2013): 601,407 units
• Sales (2013): 655,793 units
ASEAN • Product champion: Passenger car
Population (2012): 608.8 million
GDP (2012): US$2,338.9 billion
GDP growth rate (2012): 5.0% Philippines
• Production (2013): 79,169 units
Car production (2012): 4.44 million units
• Sales (2013): 181,738 units
Car total sales (2012): 3.55 million
units
Vietnam
• Production (2013): 93,630 units
• Sales (2013): 98,649 units
• Product champion: Motorcycle

Source: Automotive Summit 2013 & ASEAN Automotive Federation as of Mar 10, 2014
 2014 Thailand’s Automotive Industry

2014 VEHICLE MOTORCYCLE

Growth Growth Growth Growth

Category June Jan.-Jun. June Jan.-Jun.
YOY % YTD % YOY % YTD %

Production
160,542 952,105 -29.07 -28.95 159,090 957,985 -24.01 -19.81
(Units)

Domestic
Wholesales 73,799 440,911 -30.39 -40.48 158,991 877,746 -16.47 -20.06
(Units)

Export (CBU)
103,946 560,047 6.57 3.60 73,615 437,159 -22.21 -5.70
(Units)

Source: Thailand Automotive Institute as of Aug 14, 2014

 Thailand Automotive Industry Growth

units
3,000,000

Year 2013 2,453,717 2,457,057

2,500,000 Production = 2,457,057 Units +0.14%
Domestic Sale = 1,330,672 Units -7.36%
Export = 1,128,152 Units +9.88%
2,000,000
1,645,304

1,394,029 1,436,335
1,500,000 1,287,346 1,330,672
1,188,044
1,125,316
1,457,795 1,128,152
928,081 895,831
795,250
1,000,000 750,512 703,405
682,161 690,100776,241
584,951 999,378 1,026,671
589,126 548,871
459,418
411,721 800,357
327,233
389,100
559,428 144,065
500,000 626,026
533,176 631,251 735,627
363,156 262,189 409,362 538,962 682,161
218,330 440,715 535,563
296,985 322,053
14,000 42,200 158,130 175,293180,554 239,440
66,700 152,836
0 130,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Automotive Intelligence Unit, as of Mar 10, 2014

Production Sale Export

 Structure of Thai Automotive Industry
Assembler

(17 car companies, 8 motorcycle

companies)
Foreign
LSEs
100,000 workers J/V

Tier 1
Foreign Pure
Majority Thai Thai
54 % Majority 23 %
(Total 709 Companies)
450,000 workers

23 %

Tier 2,3 Local

SMEs
Suppliers

(1,700 Companies)

[* LSEs : Large Scale Enterprises SMEs : Small & Medium Enterprises]

Source: Thai Autoparts Manufacturers Association, OIE and BOI as of 2014
16
 Thai Automotive Industry - OEM Location

Source: Thailand Automotive Institute

ASEAN Population per Sales Motor Vehicles 2012

Population and Sales 1,351 Population Per Sales

956

Population
Sales
497

314
251 206
106 92
67 50 51 45 70
1.22 30 0.66 0.21 0.10 23.67 19.31 1.56 32
1.33 13

Developed
ASEAN Countries Developed
ASEAN Countries
Population (Million Person) Sales (Million Unit)

Source : OICA (2013) / World Bank

 Thailand’s Automotive Industry Overview

Thailand: Target: Output: High local

9th largest To manufacture 14 assemblers content :
automobile 3,000,000 units in with a combined 80-90% for pick-
producer in the 2017 production of up and 30-70% for
world in 2013 more than passenger car
2,000,000 in 2012

Thailand Automotive Industry Vision – Today and Tomorrow

Vision 2011 Vision 2021

“Thailand is a global green

“Thailand is production base in Asia
which creates more value added to automotive production base with
the country with strong automotive strong domestic supply chains which
parts industry” create high value added for the
country”

Source: Thailand Automotive Institute

Source: TAI
 “Great Leap of Next Decade” for ASEAN Automotive Industry

Relatively low penetration of vehicles

Market expansion due to Rise of Income

Growth and Rise of Middle Class

Push to produce small cars by Low Cost

Eco Car Policy (Eco Car and Low Cost
Growth Green Car Policy)
Factors of
ASEAN Market
More market competition due to
liberalization under FTAs

Market: 5 million cars by 2020-larger than

Japanese market in 2012.
Production: Surpass 6 million cars through
export growth by 2020.

Source: Automotive Summit ( TAPMA) as of June 20, 2013

Key Automotive Trend up to 2025
Factors Influence to Consumers
Global Force to Driven Trends
Investment Areas in next 5 years
 Roadmap Global Technology Trend of Powertrain

Source: IEA, 2010

25
 The way forward of Thailand

Source: MTEC
26
The Reason of weight reduction in Vehicle

Performance & Fuel Efficiency

Every 10% reduction in vehicle weight results in 5% to 7%
fuel saving

Reduce Carbon Emission

Every kilogram of vehicle weight reduction, there is the
potential to reduce carbon dioxide emissions by 20kg

So the incorporation of the lightweight materials as Plastics in

automotive is a necessity and our common need
Plastics Components in Automobile
Material Choice in Automobile

The global trends that are

affecting the choice of materials.
• engine downsizing,
• light-weighting are the
global trends that are
affecting the choice of
materials.
• A 10% reduction in vehicle
weight results in a 5-7% fuel
saving,
• no compromise on safety
and performance.
• Aluminum, Advanced High-
Strength Steel (AHSS)
• Polypropylene (PP),
polyamide (PA) and
polyurethane (PU
Automotive Plastics Market for Passenger Car

6.80%
6.90% Polypropylene
Polyurethanes

9.90% 35.60% ABS

Composites
11.20%
HDPE
12.50% PMMA
17.20%
Polycarbonates

Source : Dallas, TX (PRWEB) April 27, 2012

 Portion of Material using in Vehicle

• Plastics will account for 18% average

vehicle weight by 2020, up from 14% in 2000

Note : kg=kilogram. Due to rounding, some percentages may not add up to 100.
Source : A.T. Kearney analysis
 Plastics Advantage

Features of plastics is a drivers for their use in vehicles;

• light weight,
• lower tooling costs for high volumes
• be fabricated as a single complex component,
eliminating the need for mechanical fasteners.

Weight ratio to car

• A typical passenger car's plastic content is 9% of
vehicle weight.
• Europe leads at as high as 11% of vehicle weight.

Percentage for component

• Vehicle interior plastics occupy 48%,
• Exterior plastics account for around 27% and
• Under-hood plastics around 14% of the total
plastics used.
• Electrical and cable materials occupy the remaining
11%.
 Under the Hood Components

UNDER THE HOOD

Under-hood components using
PA6 and PA66 -light weight,
temperature and chemical
resistance

• Air intake manifolds

• Engine covers
• Radiator end tanks
• Valve covers
• Oil pan modules
Polyphenylene sulphide (PPS)
performs better than PA
• Strong candidate OEMs as a
metal replacement in order to
reduce vehicle weight.
(premium price)
 PA Applications

Polyamide (PA) are found in under-hood

components.
• In the interior segment,
• door handles,
• parts of air bag assembly,
• instrument panels,
• levers for seats and pedals use
PA6 and PA66

The average content of PA is around

11kg and is expected to grow to 13kg by
2017, replacing polymers such as PPS
for under-hood applications, for example
in charge air ducts. In exterior
applications, PA is used where the plastic
does not need to meet Class-A (high
aesthetic quality) surface requirements.
 PU Applications

Polyurethane (PU) as seating applications

Flexible PU are common Rigid PU foams are used in niche
applications
• noise, vibration and harshness materials and insulation.

PU Application
• seats,
• door skins,
• boot lining trays,
• parcel shelves,
• center consoles,
• dashboard trims,
• spare wheel trays,
• steering wheels,
• carpet backing and
• headliners.
The average vehicle content of PU is around 23kg. PU
foams occupy around 55% while rigid PU occupies 45%
rest.
 PP Applications
PP applications
• interiors
• dashboard,
• dashboard carriers,
• pillar cladding,
• door pockets,
• door panels,
• consoles and chairs.
• Exterior
• Bumpers,
• bumper spoilers,
• roof/trunk spoilers,
• lateral sidings,
• rocker panels,
• body panels
• wheel arch liners
PP accounts for around 64kg of vehicle content and this is expected to grow to
84kg by 2017,
• as reinforced PP is expected to replace metals in some under-hood and
exterior parts (such as tailgates).
• It is also replacing PU foam in seating applications, where hybrid PU-PP
foams are being used.
 ABS Applications
Acrylonitrile butadiene styrene (ABS)
finds applications largely in interiors,
such as
• interior grills,
• trims,
• headliners
• center consoles
• Exterior/interior mirror

Facing a significant substitution threat

from PP.
The average ABS content is therefore
expected to fall from 10.5kg to 9.5kg.

ABS will remain the plastic of choice in

applications where paintability or
adhesion to other surfaces is required.
 grow more slowly than the vehicle
production rate.
 Others Plastics Applications

HDPE: Fuel Tank PVC, POM: wire harness PC: Headlight

PMMA: Taillight
 Glass Fiber Thermoplastic Composite Feature

Ref: Owen Corning

 Structural Parts

Structural Parts
• Body parts
• Chassis parts
Plastic composite is a very competitive
substitution in near future.

• Long glass fiber composite

• Nano clays composite
• Carbon fiber-epoxy composite