Joint effort launched to prepare Thai auto supply chain for EV transformation
Five state and private sector agencies have started collaborating to help Thai auto parts suppliers prepare for the global shift to electric vehicles (EVs) so that Thailand can remain a global production base for vehicles, the agencies announced on Thursday.
Thailand has plenty of potential to transform itself from a global production base for cars with internal combustion engines to one that produces EVs, thanks to its strong supply chain in auto parts, Assoc Prof Pongpan Kaewtatip said at a ceremony to launch the coordinated effort.
Pongpan is also the vice president of Thailand Science Research and Innovation (TSRI), one of the five agencies now working together to help Thai suppliers make the shift to EVs.
It is a challenge for Thai entrepreneurs to adapt to the shift to next-generation auto parts, so enhanced cooperation between the public and private sectors, as well as academics, is required, Pongpan said.
He made the statement at the signing ceremony on Thursday for the five partner agencies. Besides the TSRI, they are: the Program Management Unit for Competitiveness (PMUC), National Innovation Agency (NIA), Thailand Automotive Institute, and Electric Vehicle Association of Thailand (EVAT).
Officials from the five agencies signed a memorandum of understanding (MoU) to work together to help Thai startups and small and medium-sized enterprises compete in next-generation automotive parts production. Their collaboration will also help Thai entrepreneurs develop new products for sustainable competitiveness, they said.
“We need to help entrepreneurs with the transformation to next-generation autos so that they can rely on themselves and compete in the global market in a stable and sustainable way,” Pongpan explained.
The MoU focuses on collaboration between the five agencies to help startups and SMEs develop new products for EVs. Their increased competitiveness in the world market is in turn expected to help boost Thailand’s economic growth, he said.
Industry Ministry permanent secretary Nattapol Rangsitpol, in his capacity as a board member and secretary of EVAT, said that Thailand stands a good chance of retaining its status as a global automotive production base due to its location, balanced geopolitical policy, and many free trade agreements with other countries that ensure easy access to overseas markets.
Thailand’s automotive industry has a deep supply chain, with many supporting industries and skilled labour, he added.
However, Nattapol pointed to the growing pressure from inside and outside of the country stemming from higher production costs and changes in automotive technology towards next-generation vehicles, such as EVs and connected and autonomous vehicles.
He said those challenges made it necessary for the Thai automotive industry to transform for the future, through new research and development and cooperation between entrepreneurs and researchers.
“That will be an important turning point for the Thai automotive industry,” he said.
