By Tony Li    Photo：CANVA

Thailand's automotive parts industry is one of the key pillars of its manufacturing and export economy, occupying a critical position in the global automotive parts supply chain. Due to government policy support, a well-established supply chain, and geographical advantages, Thailand has become an important automotive and parts manufacturing hub in Southeast Asia and globally, with significant influence worldwide.

1. Market Position and Exports:

• Thailand is one of the top 10 automobile producers globally, with a strong capacity for automotive manufacturing and parts supply.
• It is known as the "Detroit of Asia" due to its comprehensive automotive and parts industry supply chain.
• In 2024, Thailand is expected to produce approximately 1.8 million vehicles annually, with a large portion of them being exported. The export value of automotive parts reaches billions of dollars.
• In 2023, the export value of Thailand's automotive parts totaled approximately $8.67 billion, with total automotive product (including parts) exports expected to reach $43.7 billion in 2024.
• Thailand’s main export markets include the United States, Japan, Indonesia, Malaysia, and China.

2. Key Products:

• Engine & transmission components
• Suspension & brake system parts
• Body & frame parts
• Electronic components (e.g., sensors, control modules)
• Rubber & plastic parts (e.g., seals, gaskets)

3. Key Factories and Geographic Locations:

• Eastern Economic Corridor (EEC): This is the core region for automotive parts factories in Thailand, including Chonburi, Rayong, and other areas. These regions have well-developed supply chain infrastructure and are close to Laem Chabang Port, making them ideal for exports.
• Greater Bangkok Area: Also a major manufacturing and logistics center in Thailand, with many early-established parts processing plants and warehousing centers located here.
• Central and Northeastern Regions: Areas such as Nakhon Ratchasima (Korat) are increasingly becoming hotspots for second-tier parts manufacturers due to lower labor costs.

4. Main Export Markets:

Thailand's automotive parts exports are primarily directed to the following markets:

• Japan
• United States
• ASEAN countries such as Indonesia, Malaysia, and the Philippines
• Australia
• European Union

5. Major Companies:

i. Foreign Companies:

• Suppliers for Japanese brands such as Toyota, Honda, Nissan (e.g., Denso, Aisin, Sumitomo)
• German automotive giants such as Bosch and ZF also have factories in Thailand.

ii. Local Companies:

• Thai Summit Group
• AAPICO Hitech
• Somboon Advance Technology

6. Industry Advantages:

• Complete supply chain: Thailand hosts over 2,000 automotive parts manufacturers.
• Competitive labor costs.
• Free Trade Agreements (FTA) with multiple countries, facilitating parts exports.
• Government Support Policies:
  • The Board of Investment (BOI) offers tax incentives.
  • Policies promoting "Thailand 4.0" and the electric vehicle industry.

7. Electric Vehicle (EV) Parts Trend:

Thailand is actively transforming into an electric vehicle (EV) production hub, attracting companies such as BYD, Great Wall Motor (China), and Foxconn. The demand for related parts (e.g., battery modules, motors, electronic control units) is increasing rapidly.

8. Challenges:

• High dependence on foreign capital and external technology.
• Increased competition from countries like Vietnam and Indonesia in the region.
• During the electric vehicle transition, some traditional parts suppliers (such as internal combustion engine components) may be phased out.

Summary:

Thailand’s automotive parts industry, supported by robust infrastructure, technological innovation, and government policy, has become an integral part of the global automotive parts supply chain. As the electric vehicle market rises, the industry faces new opportunities and challenges. In the future, Thailand is likely to further solidify its position as a major automotive manufacturing and parts supply base in Southeast Asia and globally.

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