Automotive leaders are urging the government to promote greater use of locally sourced auto parts in electric vehicle (EV) manufacturing to protect the country's supply chain against cheap imported EVs.
Suwat Supakandechakul, chairman of the Automotive Industry Club under the Federation of Thai Industries (FTI), said common components such as car seats, electrical wiring and windscreens are vital for achieving economies of scale, reducing production costs, and ensuring quality standards.
High-value parts such as chassis, already manufactured in Thailand, should also be prioritised.
"The government should promote the use of these parts, and expenses can be tax-deductible," Mr Suwat said.
The FTI believes requiring foreign battery EV makers to purchase locally produced parts would mirror the practices of internal combustion engine manufacturers, thereby safeguarding Thailand's supply chain, he said.
Mr Suwat said this strategy is crucial to maintaining Thailand's status as Southeast Asia's automotive hub.
Another pressing issue is the US concern over transshipment -- products assembled in Thailand with imported components.
Washington could use this practice as grounds to impose higher tariffs on products from Thailand.
The FTI is in talks with a House committee on tariff measures, while simultaneously pushing for tougher local content rules in EV production to safeguard the industry.
Thailand's car manufacturing target for 2026 was set at 1.5 million units, including 950,000 for export.
However, the federation is considering revising this figure due to disruptions to shipping via the Strait of Hormuz caused by war.
Mr Suwat noted cars account for more than 20% of Thailand's exports to this region.
Yuphin Boonsirichan, president of the Thai Automotive Industry Association (TAIA), urged the government to restructure excise taxes on fully imported EVs to shield local producers and suppliers.
She also called for campaigns promoting the purchase of domestically assembled cars, suggesting that expenses could be offset through personal income tax reductions.
In addition, the TAIA recommended government agencies adopt fleets of EVs to stimulate demand growth.
