As Thailand’s automotive industry recovers from the initial impact of COVID-19, auto parts suppliers will need to consider business strategies and action plan for the future. According to Euromonitor International, the production value of the auto industry in Thailand in 2020 declined by 10% as volume production shrank by 29% to 1.4 million units. The industry’s production value is forecast to exceed the pre-pandemic level in 2021, with car output forecast to reach the 2019 level in 2024 due to demand from the recovering markets in China, the US and Europe. Furthermore, as Thailand will need to implement stricter car emissions standards following Euro 5 standards in 2021 and Euro 6 in 2022, new investments in engines technologies will be expected and required.
It is also important to consider the rise of electric vehicles as many governments are putting bans on new petrol cars and encouraging the production and purchase of electric vehicles. Globally, electric vehicle sales are forecast to reach 29.3 million units in 2025, and account for 29% of total new vehicle sales.* In addition, car manufacturers around the world will try to make supply chains more resilient as a lesson from COVID-19 by expanding their networks of suppliers and investing in regional production and alternative logistics options.
These are signs and development that auto parts suppliers in Thailand especially the SMEs will need to monitor closely and adjust. They will need to look for solutions to recover and stay in the future global supply chain. Empower them towards this goal at “Automotive Manufacturing 2022” by offering your most efficient technologies, innovations and solutions that will help drive Thailand’s auto industry towards sustainable future and expand your own scope of business!
*Source: ©Euromonitor International
