Production of EVs to spur linked sectors
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Production of EVs to spur linked sectors

Thailand's smart electronics and information technology (IT) industries are expected to grow rapidly next year as global electric vehicle (EV) manufacturers start production in the country, says the Office of Industrial Economics (OIE).

EV manufacturing should increase demand for electronics and IT products, which are crucial for EV assembly, said director-general Warawan Chitaroon.

EV manufacturers are expected to start producing cars in the first quarter of 2024.

"The government expects high growth potential in the EV, IT and smart electronics industries," said Mrs Warawan. "Their growth is good for the export sector because Thailand aims to be a regional hub for EVs produced for both domestic and overseas markets."

Under an eight-year EV roadmap from 2022 to 2030, the government aims to have battery EVs make up 30% of total car manufacturing by 2030, with the production of 725,000 zero-emission cars, 675,000 electric motorcycles and 34,000 electric buses and trucks.

Authorities are aware of the impact on the production of vehicles with internal combustion engines (ICE), which will eventually be replaced by electric mobility technology. Prime Minister Srettha Thavisin said earlier that the government needs to help ICE-related businesses as they play a key role in strengthening the country's automotive industry.

The OIE is monitoring Thailand's export situation, which has not been positive during this year's global economic slowdown. Some exporters have also been affected by the economic policies of some countries which have been promoting locally made products.

"The 'Make in India' scheme aims to increase domestic manufacturing in India, affecting the export of products such as air conditioners to that country," said Mrs Warawan.

In addition to exports, the office is also keeping a watch on how the Thai economy will recover amid various risk factors, such as the impact of the Russia-Ukraine war and Israel-Hamas conflict.

"Tourism is a key economic driver for Thailand at the moment, but the number of foreign arrivals now stands at 20 million, compared with the target of 30 million in 2023," said Mrs Warawan.

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