Thailand is readying its 2,500 auto parts manufacturers for a possible shift from producing parts for internal combustion engines (ICE) to electric vehicles (EVs). This as the Federation of Thai Industries (FTI) auto club announces an EV component development plan.
The EV component development plan aims to help auto parts manufacturers shift their businesses to better suit the new market. This will enable them to minimize disruption and ensure that they remain viable and competitive.
FTI is a private sector organization that brings together industrial leaders to promote economic development. The main objectives of FTI are to represent Thai manufacturers at both national and international levels, to help promote and develop industrial enterprises, to work with the government in setting up national policies, and to offer consulting services to members.
According to the FTI, auto parts companies in Thailand are original equipment manufacturers (OEMs) with up to 80 percent of auto parts sold to global carmakers. Around 40 percent of these parts are exported, while 60 percent are used domestically in Thailand to cover automotive manufacturing there.
There are over 2,500 auto parts manufacturers in Thailand including large-scale, but small and medium-sized businesses as well. Around 700 to 800 of them are members of the FTI auto club.
More than 30,000 auto parts are used in an ICE-powered car, but it is estimated that around 15,000 of them would no longer be required if an electric version of the same vehicle were produced. Moreover, some OEMs have already said that they will halt new investments for combustion engine cars, while others are already planning to end production, the FTI said.
Thailand has also announced a goal to have electric vehicles constitute 50 percent of locally made vehicles by 2030 as part of a plan to make them a regional EV production hub.
With a report from The Bangkok Post.
Well, we really have to be ready to shift to EVs soon. It's inevitable.
ReplyDelete- Mark J.
Thais are really advancing ahead, while us here in PH we are still stuck in a limbo. Zero EV infrastructure, high electricity costs and zero realization of EV manufacturing plans.
ReplyDeletePerhaps this country better go down the drain, all car manufacturers leave the country and just become importers.