Thailand flooding impacts automobile supply chain

By Freddie Pierce
A recovering auto supply chain may have been dealt another major blow in the recent weeks, as flooding in Thailand has reached epic levels. The country...

A recovering auto supply chain may have been dealt another major blow in the recent weeks, as flooding in Thailand has reached epic levels.

The country, which serves as a major automobile production hub for Asian carmakers, is witnessing its worst flooding in 50 years, and logistic problems caused by the flooding could affect automobile production.

The automobile supply chain in the region has become a mess, and hundreds of cars that are scheduled for delivery are submerged in water stemming from the Thailand floods.


About 270 people have died since the Thailand flooding began in late July, and almost 200 factories have flooded. Arguably the most important of those is Honda’s Ayutthaya production plants, which are capable of producing 240,000 vehicles each year.

With floodwaters approaching the area, Honda halted production and evacuated workers from the Ayutthaya plants on Thursday.

“(Flooding) will affect all original equipment manufacturers (OEMs) as suppliers in Ayutthaya and in Pathum Thani (Navanakorn) supply all major suppliers,” Hajime Yamamoto, Thailand director for Colorado-based research firm IHS Automotive, told Reuters.

“Honda will be hit hardest due to its location but others will nonetheless feel the disruption.”


Japan’s supply chain sees some improvement

Japan supply chain affecting India car market

October’s issue of Supply Chain Digital has gone live!

One industry source said that there were 20 car plants in the Rojana and Saharat Nakorn industrial regions that were disrupted by the floods, which makes up about 10 percent of total automobile parts production for Thailand.

The Rojana Industrial Park, located in the Ayutthaya province, about 45 miles from downtown Bangkok, also has big-time companies like Canon and Nikon, which could see their own supply chain problems caused by the flooding.

The only good news stemming from the developments in Thailand at this point is that eastern province Rayong, the center for most automobile assembly operations, has been relatively unscathed to this point.

Click here to download Supply Chain Digital’s iPad app!


Featured Articles

Supply chain shocks dampening investment, says Capgemini

Report from Capgemini Research Institute shows supply chain disruption is top risk to business growth, and that sustainability efforts are on the wane

Factory fire top supply chain disruption in 2022 - Resilinc

Report from supply chain mapping and risk company Resilinc shows that factory fires topped list of most common value chain disruptions in 2022

Logistics news roundup: Etihad Cargo, OneRail, last mile

Etihad Cargo grows China routes; US last-mile logistics giant OneRail makes key appointment; Complex logistics challenges in ROI & NI again in spotlight

Supply chain global news & views: Apple, Ukraine & Gartner

Supply Chain Risk Management

How tech can help SMBs build a resilient supply chain

Digital Supply Chain

Supply Chain Digital Show: Procurement burnout in spotlight