Leading organisations working to protect Thailand’s auto industry
Efforts to incentivise use of domestically produced auto parts, particularly those manufactured by Thai SMEs
Thailand's Board of Investment (BOI) is working with the Federation of Thai Industries (FTI) to develop strategies that will safeguard the nation's automotive industry, particularly amidst the rise of Chinese electric vehicles (EVs).
BOI secretary-general Narit Therdsteerasukdi acknowledged the potential impact of Chinese EVs on Thailand's existing internal combustion engine (ICE) vehicle industry.
To address this, the BOI is collaborating with the FTI and the Thai Automotive Parts Manufacturers Association to incentivise the use of domestically produced automotive parts, particularly those manufactured by Thai SMEs.
Currently, regulations primarily focus on the use of essential parts within the country. However, the BOI plans to introduce further incentives for companies utilising a higher proportion of Thai-made components.
These measures are expected to be finalised within two months and subsequently presented to the BOI board for consideration.
The Thai government recognises the critical role of the automotive industry in the national economy and aims to position Thailand as a regional hub for both ICE and EV manufacturing.
"We have implemented a parallel approach to support both the EV and ICE industries," said Narit. "This includes measures to encourage the use of Thai content and initiatives to strengthen domestic supply chain linkages throughout the year. The BOI is committed to developing the most effective guidelines to establish Thailand as the leading automotive production base in ASEAN and a top-10 global player."
Regarding the EV sector, the BOI emphasises the importance of sustainable development across the entire value chain, from upstream raw material sourcing to midstream manufacturing and downstream battery management.
"We anticipate that by 2025, the downstream sector will include robust used-battery management and recycling infrastructure," Narit explained. "Collaboration with relevant agencies, such as the Ministry of Industry, is crucial to identify suitable locations for these facilities and implement a comprehensive tracking system to ensure safe and responsible battery recycling."
Narit expressed confidence that the government's balanced approach would prevent further closures of automotive manufacturing plants in Thailand, as experienced previously by some Japanese manufacturers.
"Our policies are designed to be inclusive and support the competitiveness of all players within the Thai automotive market," he concluded.
