Thailand’s smart electronics and IT sectors set for growth with EV production

The Office of Industrial Economics (OIE) anticipates a significant surge in Thailand’s smart electronics, and IT sectors in the forthcoming year.

The trigger for this expected growth is the commencement of production by global electric vehicle (EV) manufacturers within the country.

The assembly of EVs is heavily reliant on electronics and IT products, hence the increased demand in these sectors, stated Warawan Chitaroon, the director-general of OIE. The production of EVs by manufacturers is projected to kickstart in the initial quarter of 2024.

The government’s focus is on the potential for high growth in the EV, IT, and smart electronics industries, as explained by Warawan. The growth in these sectors aligns with the country’s export sector ambitions as Thailand aims to establish itself as a regional hub for EVs. These are intended for both local and international markets.

An eight-year EV roadmap, spanning 2022 to 2030, has been formulated by the government. The objective is to ensure that by 2030, battery EVs account for 30% of the total car manufacturing output. This translates to the production of 725,000 zero-emission cars, 675,000 electric motorcycles, and 34,000 electric buses and trucks.

The government, led by Prime Minister Srettha Thavisin, acknowledges the impact of this transition on businesses associated with vehicles featuring internal combustion engines (ICE), which will eventually be phased out in favour of electric mobility technology. The 61 year old Thai PM emphasised the importance of supporting these ICE-related businesses as they are integral to fortifying the country’s automotive industry.

Economic regression

The OIE is closely monitoring Thailand’s export scenario, which has been less than favourable amidst this year’s global economic deceleration. Certain exporters have been negatively impacted by the economic policies of countries advocating for locally manufactured products, reported Bangkok Post.

As Warawan pointed out, India’s Make in India initiative, aimed at boosting domestic manufacturing, has adversely affected the export of products like air conditioners from Thailand.

The OIE is also vigilant about Thailand’s economic recovery, considering various risk factors such as the repercussions of the Russia-Ukraine war and the Israel-Hamas conflict.

Tourism, a crucial economic factor for Thailand, is not performing as expected. The current number of foreign arrivals stands at 20 million, a stark contrast to the target of 30 million set for 2023.