Thailand is accelerating its position as a leading auto parts manufacturer in the Asia-Pacific, emerging as a critical export hub for the renowned German Schaeffler Group. This development comes as both traditional internal combustion engines (ICEs) and the rapidly growing electric vehicle (EV) industry gain momentum, with Schaeffler preparing for transformative advancements in automotive manufacturing.
According to Micah Shepard, head of vehicle lifetime solutions for Schaeffler in Asia-Pacific, the value of the auto parts market for ICEs and EVs is expected to grow by 3-4% this year. This upward trend, driven by robust regional economic growth, is projected to continue through 2025.
Schaeffler, known for its pioneering friction-reducing rolling element bearings, recently established a large warehouse in Thailand’s Si Racha district, Chon Buri. The new facility, spanning between 3,000 and 6,000 square meters, is equipped to supply essential vehicle components to domestic and international markets, strengthening Thailand’s position as a global auto parts hub.
Thailand’s government is actively promoting the EV sector while supporting its established ICE manufacturing industry, once earning the nation the moniker ‘Detroit of Asia.’ Currently, traditional vehicles account for over 85% of production, while EVs, including battery-powered vehicles, represent a modest 1.2% as of September 2024, according to the Federation of Thai Industries (FTI).
With the ambitious ’30@30′ policy, Thailand aims to increase EV production to 30% of total vehicle output by 2030. This goal includes manufacturing 725,000 zero-emission cars, 675,000 electric motorcycles, and 34,000 electric buses and trucks, as the FTI anticipates fresh investments in the auto sector will boost economic growth and stimulate domestic sales.
Schaeffler’s investment in Chon Buri aligns with its broader strategy to develop a logistics hub that supports global supply chains for ICE and EV markets. Jens Schuler, Schaeffler’s head of vehicle lifetime solutions, emphasized the facility’s significance, noting its potential to bolster global supply chains.
Looking to the future, Schaeffler plans to establish a research and development center in Thailand, with investments slated for the first quarter of 2025. Shepard highlighted Thailand as a key investment location, adding that Schaeffler allocates around 400 million euros (approximately 14.7 billion baht) annually to global development efforts.
OBSERVATION | Kia India Hits 28,545 Festive Sales, Driven by High Demand and Exports
