Thai auto part manufacturers to shift to EV part production

Bangkok (NNT/VNA) – According to the Chairman of the Auto Parts Club under the Federation of Thai Industries, Pinai Sirinakorn, it is expected that electric vehicles (EV) will soon replace vehicles that rely on internal combustion engines as EV requires only around 15,000 parts to be built instead of 30,000 parts of traditional engines.

He said the club wants to help around 2,500 auto part manufacturers who are used to producing parts for internal combustion engines (ICE) to shift towards EV technology by launching an EV component development plan.

The EV component development plan aims to help auto part manufacturers shift their businesses to better suit the new market. They will be encouraged to improve production efficiency in accordance with Industry 4.0, which promotes the use of digital technology and data analysis in manufacturing.

The club expects to propose the plan to the new chairman of the FTI on February 15.

According to the FTI, auto part companies in Thailand are original equipment manufacturers (OEMs), supplying products to domestic and global markets. 40 percent  of their products are exported while 60 percent are sold in the country.

Meanwhile, Pinai said up to 80 percent of OEMs' auto parts are sold to global carmakers and the remaining 20 percent are supplied to the aftermarket.

However, according to the vice-chairman and spokesman for the auto club, Surapong Paisitpatanapong, the fast-paced growth of EVs is threatening OEMs in the auto parts segment. Some internal combustion engine manufacturers have decided to halt new investment projects while some had already ended their productions.

In addition, the National EV Policy Committee announced in March 2021 a goal to have EVs make up to 50 percent of locally made vehicles by 2030, aside from a bigger dream to make Thailand an EV hub of the region./.

VNA