Suphot warns Thai EV industry risks becoming mere showrooms for China

Matichon•Economy•17d ago

Reader Briefing

Suphot Sukphisan warns that high production costs may turn Thailand into a mere EV distribution market rather than a production hub for Chinese manufacturers.

•Suphot Sukphisan highlights that Thai EV parts costs are approximately 30% higher than those in China.
•The Federation of Thai Industries expresses concern that Thai EV production lacks the economy of scale seen in China.
•The private sector is discussing with the government to reduce the cost gap to approximately 15% to attract Chinese investment.
•Thai-produced EVs can compete in Australia and Europe if WTO, FTA, and Local Content rules are correctly followed.

Overview

•Suphot Sukphisan notes that Chinese EV manufacturers benefit from an economy of scale with a market of 25 million cars per year, compared to Thailand's 500,000 cars per year.
•Suphot Sukphisan warns that if Thailand cannot attract domestic production, the country risks becoming only a distribution market or showroom for foreign EVs.
•Suphot Sukphisan states that Thai parts costs are currently about 30% higher than Chinese costs due to imported raw materials, labor, electricity, and machinery costs.
•Suphot Sukphisan suggests that reducing the cost gap to 15% and emphasizing logistics risk reduction could encourage Chinese manufacturers to use Thailand as a base.
•The private sector is currently consulting with the government to find a balance and reduce production cost gaps.
•Suphot Sukphisan emphasizes that the government must strictly regulate automotive standards to maintain the quality and image of the Thai industry.
•Suphot Sukphisan recommends that the government encourage Chinese automakers to use domestic Tier 1, Tier 2, and Tier 3 parts and raw materials.

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Source: Matichon (Original)

Key Quotes

Suphot Sukphisan

"Without EV3 and EV3.5 measures to help offset costs, we worry that domestically produced cars may not be able to compete with imports from China."

ถ้าไม่มีมาตรการ EV3 และ EV3.5 เข้ามาช่วยชดเชยต้นทุน เรากังวลว่ารถที่ผลิตในประเทศอาจแข่งขันกับรถนำเข้าจากจีนไม่ได้

Key Entities

Person

Suphot Sukphisan(สุพจน์ สุขพิศาล)

Chairman of the Automotive Parts and Components Industry Group of the Federation of Thai Industries.

Organization

Federation of Thai Industries(สภาอุตสาหกรรมแห่งประเทศไทย)ℹ️

The organization overseeing the Automotive Parts and Components Industry Group.

WTOℹ️

An international trade body whose rules Thailand must follow for EV export competitiveness.

Policy

EV3ℹ️

A government measure supporting the EV industry to help offset production costs.

EV3.5

A government measure supporting the EV industry to help offset production costs.

FTA

Free Trade Agreements that influence the competitiveness of Thai-produced EVs in foreign markets.

Place

Thailand(ไทย)ℹ️

The country targeted as an EV production base and market.

China(จีน)ℹ️

The country of origin for EV manufacturers and a major global EV market.

Australia(ออสเตรเลีย)ℹ️

A potential export market for EVs produced in Thailand.

Europe(ยุโรป)ℹ️

A potential export market for EVs produced in Thailand.