Industry News

Plan the Future for Thailand’s Automotive

Prepare for the Rise of Electric Vehicles

The Electric Vehicle Association of Thailand (EVAT) was established through collaboration between the academic and automotive industrial sector in 2015. On the occasion that EVAT has welcomed Khun Krisda Utamote as the new president, the organizer of Automotive Manufacturing has visited EVAT’s office to congratulate as well as to learn more about the association’s vision on electric vehicles, and the approaches Thai auto part makers can adopt in response to the direction of global automotive industry.

“At the end of 2019, the number of battery electric vehicles (BEV) has increased 380% from 2018, which is a really high growth figure. The number of BEV registered in Thailand in the first half of 2020 was even more than three thousand units, compared to about one and a half thousand in 2019. We expect this number to grow even further in 2021 as a result of new car manufacturers’ investment and expansion into Thailand.”

“The government has a policy to increase their xEV fleet, so EVAT has participated and discussed with the government agencies on relevant policies which we have observed from best practices around the world, particularly in users’ incentive schemes. At the moment, the government is planning an EV road map with a goal to increase the number of registered xEV to 1.2 million units by 2036. We are also supporting the expansion of charging points and power outlets at various public places. One agenda we are trying to push forward is to explore charging possibilities across the network and common payment platforms to create convenience and transparency for both xEV drivers and local service providers."

The growth of electric vehicles could have an impact on traditional auto-parts since a number of parts makers only produce parts and components for internal combustion engine (ICE) vehicles. Khun Krisda has suggested approaches that auto-part makers could take as follows:

“At the end of 2019, Thailand was the 11^th largest car manufacturer in the world where the ratio of vehicles sold domestically and export was approximately 50:50. Traditional cars will not be gone completely in the future, but will likely be reduced in number while xEV expands. Some of the parts such as brake discs or brake pads can still be used in both types of vehicles, but some including engines may no longer be required and this could lead to challenges for Thai parts makers. However, Thailand still needs to import battery cells for xEV thus local manufacturers should find new opportunities in the new industries that can be compatible with their existing machineries and processes. They should keep a close watch on new technologies and alternative materials that could be in high demand in the future.

Being up to date with the trend will enable timely entry into the market. One of the approaches is to learn about modern technologies and machinery, as well as meeting up with the experts at relevant trade exhibitions and conferences in order to continuously update the business opportunities and how to adapt their business effectively.”