Thai auto industry must adapt quickly to EV production, govt warns
The Energy Ministry has warned that businesses in Thailand’s automotive industry must adapt quickly to the growing trend for electric vehicles (EVs).
Prasert Sinsukpraser, who heads the ministry’s Department of Alternative Energy Development and Efficiency, said the Thai EV industry would grow rapidly between 2020 and 2024, including the manufacture of batteries.
The growth would have a big impact on Thailand’s auto industry, the second biggest in Southeast Asia, since manufacturers will find it difficult to adapt their production methods from internal-combustion-engine vehicles to EVs.
Prasert explained that conventional vehicles consist of around 20,000 to 30,000 auto parts, while EVs use only 2,000 to 3,000. Thai manufacturers of gear systems, engines and axels would find the transition especially difficult, he said.
“Producers must adapt themselves to the EV market. The battery will be the core of EV production. And if Thailand can be a leader in the EV battery industry, we can be winner in EV industry.”
The government would offer incentives for EV battery producers to build both production and assembly plants in Thailand, he added
It also aims to boost demand by promote EV battery usage, first within government subsidiaries and then for the public.
Noting rapid expansion of the global EV battery market, he said battery sales in China had increased by 175 per cent in 2018 alone, driven by the surging EV industry.