As previously indicated, Malaysia isn’t the only country in the region where the topic of safeguarding consumer interests versus developing the local automotive industry continues to be debated, with Thailand pretty much in the same boat.
The growing shift towards electrification and an influx of CBU imported models – with a significant cost advantage – from China is having a significant impact on local production, threatening not just the survival of Thai auto-parts manufacturers but also the many local jobs the sector provides..
While foreign investment remains crucial for economic growth, the country’s automotive leaders are urging the government to promote greater use of locally-sourced auto parts in EV manufacturing to protect the country’s supply chain, the Bangkok Post reports.
According to Suwat Supakandechakul, chairman of the automotive industry club under the Federation of Thai Industries (FTI), local sourcing can be made for common components such as car seats, electrical wiring and windscreens. He said that these components would allow economies of scale to be achieved, which would reduce production costs.
“The government should promote the use of these parts, and expenses can be tax-deductible,” he said, adding that high-value parts such as the chassis, already manufactured in Thailand, should also be prioritised.
The FTI believes requiring foreign battery EV makers to purchase locally produced parts would mirror the practices of internal combustion engine manufacturers, thereby safeguarding Thailand’s supply chain.
Suwat said this strategy, aside from helping maintain Thailand’s status as Southeast Asia’s automotive hub, would also tackle another pressing issue, which is the United States’ concern over transshipment of products assembled in Thailand with imported components.
He said that Washington could use this practice as grounds to impose higher tariffs on products from Thailand, and indicated that the FTI is in talks with a House committee on tariff measures, while simultaneously pushing for tougher local content rules in EV production to safeguard the industry.
Meanwhile, Yuphin Boonsirichan, president of the Thai Automotive Industry Association (TAIA), urged the government to restructure excise taxes on fully imported EVs to shield local producers and suppliers. Her call mirrored that made by the Electric Vehicle Association of Thailand (EVAT) and the Thai Auto-Parts Manufacturers Association (TAPMA) back in May.
She also called for campaigns promoting the purchase of locally-assembled cars, suggesting that expenses could be offset through personal income tax reductions. The TAIA also recommended that government agencies adopt fleets of EVs to stimulate demand growth.
thailand also have meetee minister johari?
So …Can THAILAND produces EV parts in the first INSTANCE. Their industry HAVE BEEN based on ICE . More critical .. can they be CHEAPER and with the Quantities required. As USUAL…… EXISTING industry wants MORE PROTECTION at the EXPENSWE of the CONSUMERS! ….
Just heard the news that new rule in Thailand last week, export products from TH need to have 70% local content. Example like a car, 70% content need to made in TH, meaning only 30% components can import from other countries to TH to built a complete cars and export the made in TH complete vehicles to overseas.
For cars it has more than 10k parts to build a car. No carmaker in the world is making all parts by themselves like nuts, gearbox, fuel pumps etc. Many items need to import from overseas because the local suppliers unable to fulfill their requirement or without huge volume the supplier will charge higher price. This 30% local content gonna make it extremely hard for many industries in Thailand who doing export business.
“Thailand auto groups urge gov’t to ensure greater use of local parts for EV manufacturing”.
This is pretty dumb request. The battery consist more than 30% of the EV car. Thailand is not well know of making their own battery and we can imagine without large scale of volume the cost of making an EV car will shoot up high purely because of using local manufacturing battery. At the end all citizens need to pay higher price to protect local industry.
Chinese companies had already produce ev parts and battery in Thailand since 2023 ,Korean very very slow even Hyundai’s presence in Thailand has been decades but super slow in everything new models opening price super high how to compete and japanese not interested in ev so overall bright future for chinese
Jo ha ree should be Bapak Automotive Thailand where he get worshipped like a god
Johari also consulting thailand ah
Old tech product is time for clearance sales