Thai Automotive Parts Industry Seeks Increased Government Support
The Thai automotive industry is seeing a downturn with 644,951 vehicles produced in the first five months of 2024—a 16.88% decrease from last year. Issues like a sluggish economy and rejected car loans are hurdles, as 80% of car purchases in Thailand are financed. Government support is crucial for transitioning to electric vehicles and sustaining the auto parts supply chain.
The Thai automotive industry is experiencing a downturn, with vehicle production in the first five months of 2024 totaling 644,951 units, a 16.88% decrease compared to the same period last year.
This decline is attributed to a sluggish economy and problems with car loan rejections, which affect sales since 80% of car purchases in Thailand are made through financing.
The reduced car production has impacted the supply chain, especially at the tier-2 level and below.
The Federation of Thai Industries (FTI) emphasizes the need for government support to navigate the transition to electric vehicles (EVs), which have fewer parts than internal combustion engine vehicles.
Parts manufacturers propose government preparations for this shift, yet implementation has lagged.
Suphot Sukphisarn, secretary-general of the Cluster of FTI Future Mobility-ONE and chairman of the Automotive Parts and Accessories Industry Group, underlines the necessity for support in terms of cost, skills, and technology to sustain businesses and employment.
The article suggests sectors like medical device manufacturing, robotics, aerospace parts, rail system parts, and aftermarket parts where skills from the automotive industry can be leveraged.
The successful transition to EV production is unlikely without government intervention, distinct from Taiwan's experience.
Suphot highlighted ongoing efforts with the Industry Ministry to secure industry backing.
This decline is attributed to a sluggish economy and problems with car loan rejections, which affect sales since 80% of car purchases in Thailand are made through financing.
The reduced car production has impacted the supply chain, especially at the tier-2 level and below.
The Federation of Thai Industries (FTI) emphasizes the need for government support to navigate the transition to electric vehicles (EVs), which have fewer parts than internal combustion engine vehicles.
Parts manufacturers propose government preparations for this shift, yet implementation has lagged.
Suphot Sukphisarn, secretary-general of the Cluster of FTI Future Mobility-ONE and chairman of the Automotive Parts and Accessories Industry Group, underlines the necessity for support in terms of cost, skills, and technology to sustain businesses and employment.
The article suggests sectors like medical device manufacturing, robotics, aerospace parts, rail system parts, and aftermarket parts where skills from the automotive industry can be leveraged.
The successful transition to EV production is unlikely without government intervention, distinct from Taiwan's experience.
Suphot highlighted ongoing efforts with the Industry Ministry to secure industry backing.
