Gearing down: Thai auto parts makers face shock as EVs speed ahead
Thai auto parts manufacturers for internal combustion engine (ICE) vehicles face significant disruption due to the rising popularity of electric vehicles (EVs), according to Tru Automotive, a supplier of auto parts under the TRW brand.
Pornsak Ariyapongpairoj, Managing Director of Tru Automotive, stated that sales of parts for ICE cars are expected to decline as EV makers do not use them. This downturn will push parts manufacturers to seek new markets in countries where ICE vehicles remain prevalent and governments are not aggressively promoting EVs, said Pornsak.
“The Thai government is promoting EV usage under the 30@30 scheme, aiming to support the global campaign for net-zero targets.”
The 30@30 policy aims for EVs to represent at least 30% of Thailand’s total motor vehicle production by 2030. This includes the production of 725,000 zero-emission cars, 675,000 electric motorcycles, and 34,000 electric buses and trucks.
Despite these challenges, Pornsak expects the market value of auto parts in Thailand to reach 200 million baht (US$6 million) this year, the same as in 2023.
To boost domestic sales, Tru Automotive has partnered with ZF Group, a German-based supplier of automotive products and systems. Together, they launched the TRW x Transformers campaign, offering customers souvenirs from the Transformers movie franchise, said Pornsak.
“We expect this campaign to increase sales by 25% because customers aged over 30 years old are fans of Transformers.”
ZF Group, aware of the impact of EVs on ICE auto parts manufacturers, is also exploring opportunities in high-potential markets like India and Indonesia, where many drivers still use ICE vehicles.
Ravikumar Loganathan, head of the business line passenger car strategy at ZF Aftermarket, noted that despite the growing popularity of EVs in Thailand, there remains a market for ICE auto parts due to the projected 30% share of zero-emission cars in total car production, reported Bangkok Post.
In related news, Thailand’s automotive industry is hitting the skids, with car manufacturing, domestic sales, and exports all taking a nosedive in August, according to the Federation of Thai Industries (FTI).
