EVs to supercharge 3.5% growth in Thailand auto manufacturing: Institute
The Thailand Automotive Institute (TAI) expects the domestic electric vehicle (EV) industry to drive 3.53% growth in auto production this year to 1.95 million units.
About 900,000 units will be sold domestically and 1.05 million will be exported.
TAI’s projection comes after 625,423 vehicles rolled off Thai production lines from January-April, up 5% from the same period last year.
However, domestic sales shrank 6% to 276,603 units due to a tightening of loan approvals amid rising household debt and high interest rates.
Bucking the trend were electric vehicles (EV), with registration soaring 1,206% to 19,347 units compared with the same period last year.
EV exports also rose 18% to 353,632 units, attributed to last year’s low base and the scarcity of semiconductor components and production parts.
Thailand’s "30@30" policy – for 30% of vehicles made in Thailand to be zero-emission vehicles by 2030 – along with measures to promote EV production have encouraged several Chinese EV makers to establish plants in Thailand. However, TAI pinpointed challenges to Thailand’s homegrown EV businesses, including changing conditions for international trade and investment. Measures to restrict cross-border trade have eased, such as local content requirements, coupled with the fact that Chinese parts manufacturers have higher technological capability and lower production costs. These factors impact the competitiveness of domestic automobile parts manufacturers in Thailand, TAI said.
However, Thai manufacturers will have opportunities to tap new technologies, knowledge, and business networks at the "Manufacturing Expo 2023" and the "Automotive Summit 2023" at BITEC Bangna on June 21-24, it added.
Regarded as the most comprehensive machinery and technology industry event in Southeast Asia, the Manufacturing Expo will combine eight specialised exhibitions showcasing machinery and technology.