10 Thai Automotive Associations Submit 8 Emergency Measures to Government to Preserve Manufacturing Base
Ten Thai automotive associations representing 1,500 members urged the government to adopt eight emergency measures protecting domestic vehicle manufacturing from Chinese EV imports, warning of an "industrial cliff" if production incentives
On May 14, 2025, at the Thai Subcon Activity Zone Hall 104 in the Bangkok International Trade and Exhibition Centre, the Thai Electric Vehicle Association (EVAT) and nine other automotive and parts industry associations, representing over 1,500 members, signed a joint statement urging the government to implement protective measures for Thailand's automotive industry, a key pillar of the national economy.
The coalition was led by Sompool Tanadamrongsakdi, chairman of the Thai Auto Parts Manufacturers Association (TAPMA); Chanin Kaojanthan, chairman of the Thai Subcontractor Promotion Association; Pornpisit Nitisupparattana, board member of the Thai Printed Circuit Board Association (THPCA); Chatchai Pholmun, vice chairman of the Thai Automation and Robotics Association (TARA); Oranung Jaiyern, chairman of the Thai Composites Association (TCA); Wiroj Sirithanasatra, chairman of the Thai Die and Mold Industry Association (TDIA); Associate Professor Virul Sribhoranarak, chairman of the Thai Embedded Systems Association (TESA); Dr. Natthanai Kunanusonti, vice chairman of the Thai Energy Storage Technology Association (TESTA); and Nithiphoom Pongsriangyos, vice chairman of the Thai Foundry Industry Association (TFA).
The statement indicated that Thailand's automotive industry faces a severe crisis from the EV transition, particularly as major automakers are shifting strategy to import finished electric vehicles (CBU) from China under 0% tariff privileges instead of establishing manufacturing bases in Thailand. This has caused Thai parts manufacturers to lose significant orders and risks disrupting the entire supply chain.
There is also concern that when the EV promotion measures expire in 2027, without mandatory domestic production requirements or state subsidies, manufacturers may choose to import vehicles entirely from China rather than invest in Thai production, potentially creating an "industrial cliff" that would impact employment and the broader economy.
"The ten associations are calling on the government to make a strategic decision on whether Thailand will be merely a 'cheap EV consumer market' or maintain its status as a 'global automotive manufacturing base,' and have requested an urgent meeting with the Prime Minister to discuss solutions."
The eight emergency measures include:
1. Reform excise tax to create significant tax differential between imported and domestically-produced vehicles, using a "real investment for import quota" system 2. Adjust local content criteria and free trade zones to reflect actual use of domestic parts and raw materials 3. Promote "common components" where Thai manufacturers are competitive, especially high-value parts like chassis and body 4. Adjust BOI policy to protect Thai operators and strengthen post-investment inspection 5. Address raw material cost issues through government-to-government negotiations and control scrap metal exports 6. Enhance product origin verification to prevent export frauds 7. Promote technology transfer and open channels for Thai software developers to participate 8. Promote domestic testing and upgrade ADAS safety standards to develop advanced knowledge in Thailand
Surot Sangsanit, chairman of the Thai Electric Vehicle Association, stated that all proposals do not aim to block imported electric vehicles or raise car prices, but rather to ensure fair competition between operators who invest genuinely, produce domestically, and use local parts, versus those focusing on importing finished vehicles without creating added value in Thailand.
