Thailand’s Board of Investment (BOI) is joining forces with the Federation of Thai Industries (FTI) to safeguard the country’s auto industry amid growing competition from Chinese electric vehicles (EVs).
BOI Secretary-General Narit Therdsteerasukdi acknowledged the disruptive potential of Chinese EVs on Thailand’s internal combustion engine (ICE) vehicle industry. To counteract this, the BOI is collaborating with the FTI and the Thai Automotive Parts Manufacturers Association to encourage the use of locally produced automotive components, particularly from Thai small and medium enterprises (SMEs).
Boosting Local Content
Current regulations prioritize essential local parts, but the BOI plans to offer additional incentives for companies adopting higher proportions of Thai-made components. These measures, expected to be finalized within two months, will be presented to the BOI board for approval.
“The automotive industry is a cornerstone of our economy,” Narit said. “We aim to make Thailand a regional hub for ICE and EV manufacturing.”
Parallel Development of ICE and EV Industries
Thailand’s strategy balances support for both ICE and EV sectors. The BOI is implementing policies to strengthen domestic supply chain linkages and bolster the use of local automotive content. Narit highlighted the government’s ambition to position Thailand as ASEAN’s leading automotive production base and among the top 10 globally.
For the EV sector, the BOI prioritizes sustainability across the value chain, encompassing raw material sourcing, manufacturing, and battery management. By 2025, Thailand plans to establish a robust infrastructure for used-battery recycling, with collaboration from agencies like the Ministry of Industry.
Ensuring Market Competitiveness
Narit expressed confidence in the government’s ability to maintain Thailand’s competitiveness and prevent further closures of automotive manufacturing plants, some of which had been affected by global shifts in the industry.
“Our policies are inclusive, designed to strengthen the position of all players in the Thai automotive market,” he concluded.
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