The government is making efforts to ensure that Thailand remains an important automotive production and export base for the global market. Deputy Prime Minister and Minister of Commerce Phumtham Wechayachai has discussed this matter with automotive industry representatives.
The commerce minister revealed that the recent discussion involved the matter of reducing costs for businesses in the automotive industry and directions to be taken to support the expansion of automotive sector exports. One focus topic was on the utilization of free trade agreements to increase export opportunities and expand into various export markets. The talks also touched on sourcing cheap raw materials and finding business partners for Thai automotive firms.
According to the commerce minister, all trade-related units under the Ministry of Commerce have been assigned to closely coordinate and discuss with businesses in the automotive sector.
Thai Automotive Industry Association President Suwat Supakandechakul pointed out that Thailand does not have its own auto brand despite being among the world’s top ten auto manufacturers. To compete with major producing countries, Thailand would need more advantageous points. Suwat thus proposed that the commerce ministry promote Thailand’s auto exports using up-and-coming FTAs that are currently being negotiated. He noted that FTA negotiations should cover the electric vehicles (EV) industry, both in the aspects of manufacturing and exportation, as the details for EVs would differ from combustion engine vehicles. Regulations on the origin of goods were noted as one of the differences.
The association president also suggested that auto industry representatives be allowed to take part in considering details of FTAs. Furthermore, he asked that the government quickly address obstacles faced by auto businesses, such as reducing the steps required for obtaining import and export permits by implementing electronic systems.
Thailand expects to produce no fewer automobiles than last year, when 1.9 million automobiles were manufactured. The export target is similar to the amount exported in 2023, or 1.15 million units. Figures from the Department of International Trade Promotion indicate that Thailand exported 865 billion baht worth of automotive products in 2023, an increase of 12.96% over 2022’s figure. (NNT)
