BACK Exploring the Electric Vehicle Trend and Thailand's Industrial Parks as a Leading Production Base
The electric vehicle (EV) industry is one of the strategic sectors that Thailand aims to promote as a key production center. International EV manufacturers are increasingly investing in industrial estate lands in Thailand to establish production plants and expand their EV parts manufacturing lines. This growing investment reflects the confidence that foreign companies have in Thailand’s potential.
The Direction of the EV Industry and Government Support to Drive the Market
In 2023, the Electric Vehicle (EV) market is expected to grow, particularly for Battery Electric Vehicles (BEVs), which are gaining a larger market share. This growth is supported by government efforts to enhance industrial estate lands in Thailand to create an ideal base for EV production. The National Electric Vehicle Policy Committee has set a target for Thailand to produce 725,000 electric cars and pickup trucks, 675,000 electric motorcycles, and 34,000 electric buses/trucks by 2030.
With this direction, the automotive parts industry, which plays a crucial role in the EV supply chain, will benefit from the growth of the EV market. Growth opportunities include industries such as:
- Battery production
- Electronic circuit boards
- Electric motors
- EV components
These related industries have the potential to expand to meet the growing demand for EV production. Although the high cost of raw materials, particularly metals, remains a challenge (with prices expected to stay 14-28% above average for 2023 and 2024), the long-term outlook for EV-related industries remains positive. Additionally, the development of industrial estate lands and critical infrastructure, combined with Thailand's existing expertise in automotive parts manufacturing, provides a strong foundation for growth. With full support from the government, the future of the industry looks bright.
Moreover, the BOI is not only focused on investment but also promotes market demand by encouraging the public to buy and use electric vehicles.
Preparing Industrial Estates to Become Southeast Asia's Leading EV Hub
304 Industrial Park, for instance, has developed sufficient land to accommodate a wide range of industries. With ample space for large-scale factories and pre-built facilities ready for lease, the park offers comprehensive infrastructure and utility services. Additionally, 304 Industrial Park is actively upgrading its facilities to support the growing automotive industry, including the production of EVs.
Addressing Challenges: Technology and Workforce Development
304 Industrial Park is ready to support Thailand’s journey towards becoming a strong EV production hub, offering facilities for all types of industries looking to expand their production bases. For businesses planning to establish factories, more information on land sales in 304 Industrial Park can be found at 304industrialpark.com.
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The Arrival of Foreign Manufacturers Establishing Bases in High-Potential Industrial Estates
In the near future, more automakers from various countries are expected to set up factories in Thailand’s industrial estates. The EV industry is projected to see increased investment in 2024 from several major automakers, driven by factors such as:
- Government investment incentives supporting foreign production and sales of EVs in Thailand
- A expanding market with a growing customer base as the prices of electric vehicles decrease
- The capabilities of leading automakers, competing to develop advanced EV technology, are driving improvements in the efficiency of electric vehicles. Expansion of essential services such as EV charging stations
- The strategic location of industrial along with the availability of ready-built factories and critical infrastructure, makes it easier for companies to purchase industrial land and relocate production to Thailand
BOI’s Role in Collaborating with Automakers and Developing Industrial Estates
The Board of Investment (BOI) plays a vital role in supporting the EV industry, offering tax incentives to various EV-related sectors, including electric cars, motorcycles, tricycles, buses, trucks, boats, and EV components and equipment. The BOI’s investment promotion measures typically involve tax benefits designed to attract manufacturers to set up production bases in industrial estates.
Moreover, the BOI is not only focused on investment but also promotes market demand by encouraging the public to buy and use electric vehicles.
Preparing Industrial Estates to Become Southeast Asia's Leading EV Hub
Thailand's potential to become an EV hub depends not only on market factors but also on the development of industrial estates. The country has a long history of being a leading producer of internal combustion engine vehicles, with several industrial zones already home to major automotive manufacturers. These zones have well-established resources, labor, infrastructure, and logistics systems, making them ideally positioned to transition into the EV production industry.
304 Industrial Park, for instance, has developed sufficient land to accommodate a wide range of industries. With ample space for large-scale factories and pre-built facilities ready for lease, the park offers comprehensive infrastructure and utility services. Additionally, 304 Industrial Park is actively upgrading its facilities to support the growing automotive industry, including the production of EVs.
Addressing Challenges: Technology and Workforce Development
The key difference between traditional and future vehicles is technology, which will continue to advance. Some cutting-edge technologies may pose challenges in terms of learning and implementation, making technological know-how crucial for industrial estates. With evolving technologies, workforce development becomes essential, as workers must quickly adapt to new technologies.
304 Industrial Park is ready to support Thailand’s journey towards becoming a strong EV production hub, offering facilities for all types of industries looking to expand their production bases. For businesses planning to establish factories, more information on land sales in 304 Industrial Park can be found at 304industrialpark.com.
Information Source:
- https://thestandard.co/chinese-evs-production-in-thailand/
- https://www.amarintv.com/spotlight/corporate/detail/56302
- https://mgronline.com/business/detail/9670000005721
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