The Federation of Thai Industries (FTI) is prompting local auto parts manufacturers to navigate the technological shifts brought by the proliferation of electric vehicles (EVs) by transitioning into the medical devices sector. FTI Vice Chairman Isares Rattanadilok Na Phuket pointed out the increasing obsolescence of components designed for internal combustion engines in the EV-dominated market.
To aid Thailand’s automotive industry in adapting to these changes, the FTI established the Mobility-ONE cluster, CFM-ONE, last year to steer efforts towards medical equipment manufacturing. The shift emphasizes producing disposable items, such as diagnostic test kits, and durable goods, including wheelchairs and hospital beds.
According to Krungsri Research, this transition is considered a potent economic stimulant, with the medical device sector expected to grow annually by 5.5-7.0% domestically and 6.5-7.5% internationally between 2023 and 2025. Growth drivers include an aging demographic, rising chronic disease prevalence, increased interest in preventive healthcare following the pandemic, and the booming medical tourism industry—one of the government’s targeted S-curve industries.
The FTI is engaging with the government to open new avenues in the medical field and facilitate auto parts manufacturers’ business adjustment to meet new market demands. The CFM-ONE cluster also plans to collaborate with global car manufacturers to help local suppliers pivot their production capabilities to align with EV requirements. (NNT)
