Effort to help parts producers evolve
The Thailand Automotive Institute (TAI) plans to equip Thai auto parts producers with electric vehicle (EV) technology know-how as part of measures to help them better compete with Chinese firms that are expanding their EV-related businesses in Thailand.
As Chinese firms, especially EV component makers and sellers, supply products to the growing EV market in Thailand, local auto parts manufacturers can expect fierce competition, said Kriengsak Wongpromrat, president of the TAI.
“Chinese EV component factories have higher technological capabilities and lower production costs than those of Thai factories. This will affect the competitiveness of local auto parts makers in Thailand,” he said.
The TAI, in cooperation with exhibition organiser RX Tradex, is preparing to organise the Automotive Summit from June 21-24 at Bitec Bang Na to update participants on global trends and tech knowledge.
The growth of the EV industry in Thailand is continuing its momentum, especially after the cabinet last year approved a package of incentives including tax cuts and subsidies to promote EV consumption and production between 2022 and 2023.
Thai-Chinese joint venture SAIC Motor-CP, the manufacturer of MG cars, announced it would produce 100,000 EV cars per year in Thailand. China’s BYD plans to produce 150,000 EVs per year in Thailand, while Great Wall Motor aims to manufacture 80,000 EVs per year. Neta, another Chinese auto manufacturer, is planning to manufacture 20,000 EVs per year in Thailand.
Changan Automobile and GAC Aion are also in the process of developing their EV businesses in Thailand, while Chery Automobile plans to make an EV investment here next year.
The growing EV industry provides both opportunities and challenges in Thailand’s automotive market, which also recorded an increase in car imports, including both EVs and oil-powered cars, according to TAI.
In the first quarter this year, car imports from China soared 58% to 1.07 million units year-on-year, compared with 950,000 cars imported from Japan.
The rise was driven by the popularity of EVs and strong competition in the Chinese auto market, said the institute.
Like Chinese automakers, foreign automakers in China are likely to export their EVs to Thailand as they cannot compete with local rivals in terms of costs. They are considering reducing their investments in China, said TAI.