In an era where Thailand is transitioning into a production hub for electric vehicles (EV), over 2,500 small and medium-sized enterprises (SME) in the automotive parts industry are facing a critical turning point for survival. This is because the parts they currently manufacture for internal combustion engine (ICE) vehicles are not compatible with EV.
The majority of Thai parts manufacturers are in Tier 3 and Tier 4, which makes it difficult for them to upgrade machinery and adopt the innovation required for EV production. Consequently, many may face closure or have to switch to other businesses, impacting a large number of workers.
Government Support Measures:The government has implemented measures to help SMEs.
1. BOI : This promotes investment to upgrade the automotive parts industry. It allows foreign companies to hold up to a 70% stake in joint ventures with Thai companies to attract new technology and innovation.
2. Excise Department/Customs Department: The EV3 and EV3.5 measures set conditions requiring automakers to use key components manufactured in the country or ASEAN for no less than 40% of the ex-factory price. These components include items such as batteries, motors, and inverters.
