THAILAND AUTOMOTIVE CONTENTS Introduction – Mike Hawes OBE, Chief Executive, SMMTForeword – Ben Morley, Commercial Counsellor and Country Director – TradeBritish Embassy BangkokReport OverviewThailand Automotive Production OverviewThailand Automotive Market Overview INTRODUCTION SMMT helps automotive and mobility companies in the UK grow their businessoverseas through a programme of international activities. Thailand has been amainstay of that programme and, through a series of UK exhibition groups over the The automotive sector plays an important role in Thailand’s economy, positioningThailand as one of Southeast Asia's key automotive manufacturing hubs. Over thepast few decades, the industry has seen significant growth, driven by both domesticdemand and a strong export market. Supportive government policies have attracted This report provides an in-depth analysis of the current state of the Thai automotivesector, including production trends, key market players, and emerging challenges This report will help UK firms better understand the automotive sector in Thailandand identify growth opportunities for their business. Accordingly, the report includes Mike Hawes, Chief ExecutiveThe Society of Motor Manufacturers and Traders (SMMT) FOREWORD I am delighted that we are working closely with the Society of Motor Manufacturersand Traders (SMMT) to explore opportunities for UK-Thailand collaboration. ThisThailandAutomotive Sector Report provides an in-depth assessment of theautomotive ecosystem in Thailand, with a particular focus on the burgeoning electric Thailand, as a key automotive player in the ASEAN region, has set an ambitious targetthrough its 30@30 policy, aiming to make the country a production base for EVs by2030. Yet fossil fuels are still the dominant source of power in the current system. So,we are delighted to support the Thai government’s vision to deliver a sustainable TheUK is at the forefront of innovations in energy transition and sustainableinfrastructure, and our EV ecosystem has matured significantly in recent years. A keysuccess factor to the UK’s growth has been UK grant funds for innovation and pilotprojects, which have propelled our businesses to become leaders in zero emissiontechnologies(incl.batteries,motors,and power electronics),connected and The Department for Business and Trade is keen to support Thailand’s low carbontransportation and energy transition ambitions and has been working alongside UKbusinesses to connect with Thai partners in building a green transport future. Isincerely hope that this report can serve as a practical guide for our partners, both in Ben MorleyCommercial Counsellor and Country Director – Trade REPORT OVERVIEW Thisreport describes Thailand's automotive landscape.Highlighting the marketopportunities for UK automotive companies arising from Thailand’s vehicle production,vehicles in circulation, market trends, and regulatory drivers across different vehicle THAILAND AUTOMOTIVE PRODUCTION From Detroit of Asia to Electric Vehicle manufacturing hub Thailand has become a major automotive manufacturing hub and has been called“the Detroit of Asia” for decades. The industry growth that began in the 1960s hasbeen fuelled by consistent government support to attract foreign direct investment(FDI). The introduction of the Board of Investment (BoI) incentives was a pivotal Thailand's focus on “product champions” such as pick-up trucks in earlier years andlater eco-cars (vehicles designed to reduce environmental impact with small enginesize), has solidified its competitive edge in automotive supply chains. Recent surgesin demand for electric vehicles (EVs) have further diversified the industry. Thailand Vehicle Production As of September 2024, Thailand’s motor vehicle production volume was 1.128million vehicles (-19% compared to the same period in 2023). This decline reflectsboth weakening domestic demand, driven by stricter financial criteria and reduced Thailand has 25 car manufacturers (12foreign-owned, nine joint ventures and fourThai-owned), 26 motorcycle producers (10foreign-owned, eight Joint Ventures andeight Thai-owned) and several bus andtruck manufacturers. Japanese brands,Chinese brands, and American brands are Thailand hosts 57 automotive OEM locations, including 10 headquarters (somelocated within the plants) and 49 plants. Key assembly hubs are Rayong and SamutPrakan, due to their proximity to deep-sea ports and key logistics routes. Rayong has Automotive Parts production Thailand’s automotive parts sector consists of 2,415 players categorised into threetiers. Tier-1 manufacturers, responsible for high-quality parts, are 47% foreign-owned, 30% joint ventures and 23% Thai-owned. They produce key componentssuch as engines, electrical systems, transmissions, and body panels. Among them, Tier-2 and tier-3 suppliers, provide raw materials and supporting components likerubber parts, metal fasteners, and plastic mouldings, (mostly Th