The Industry Ministry is urging manufacturers in five industries, including car manufacturing, to take more serious efforts to adapt to projected US trade policies, the influx of low-cost imports into the Thai market, and disruptive technology.
The other four industries comprise electronics, electrical appliances, steel and garments.
"We suggest entrepreneurs in these segments closely monitor the impact of these factors that can intensify, affecting their businesses this year," said Passakorn Chairat, director-general of the Office of Industrial Economics (OIE).
Domestic car sales are slumping, as buyers face difficulties in accessing auto loans amid high levels of household debt.
Meanwhile, auto parts makers predominantly manufacture parts for internal combustion engine-based cars, meaning they are affected by the shift to electric mobility technology.
Thailand is promoting greater use of electric vehicles, with EV incentives granted to global EV makers to encourage them to build EV assembly factories in Thailand.
Auto parts makers were advised last year by the Federation of Thai Industries (FTI) to consider adjusting their businesses by diversifying to the production of medical devices.
The FTI believes parts producers can transition to manufacturing medical products, including some single-use devices such as test kits to diagnose illnesses and durable items such as wheelchairs and hospital beds. But the transition must be aided by the government, according to the federation.
The OIE earlier warned of tougher competition in the Thai market as foreign sellers gained market share by shipping more products here.
Last year, many people bought cheap imported products rather than locally made items. The private sector said these low-cost imports mainly come from Chinese entrepreneurs who often sell the items via online platforms.
A stronger US tariff policy is expected once Donald Trump is sworn in as president, which could affect Thai manufacturers, noted the OIE.
Trump has said he will impose tariffs of 10-20% on all imported products, with tariffs of 60-100% on goods imported from China, according to media reports.
