While he saw opportunities from Chinese EV investment, established Chinese supplier networks, pricing pressures and the cost of new machinery made entering those supply chains difficult.
“We would welcome measures that give Thai suppliers a fair opportunity to participate in the EV supply chain,” he said.
Pavida argued that Thailand can adapt existing capabilities in bodies, seats, wiring and glass, but higher-value components such as batteries, motors and power electronics remain difficult to localise.
“Chinese suppliers serve a huge home market, so Thai firms struggle to match their costs.
“Chinese carmakers keep the highest-value parts, batteries and software, within their own groups or with trusted Chinese suppliers. Thailand will need time, and targeted incentives, to move into those layers,” she added.
The challenge extends beyond Thailand. Chinese manufacturers are expanding across Southeast Asia, including in Malaysia and Indonesia, while Vietnam has developed a substantial domestic EV market.
Thailand’s higher taxes could make local production more attractive, but also complicate efforts to build integrated automotive supply chains across the Association of Southeast Asian Nations (ASEAN), now an 11-member regional bloc.
While the new excise, which would apply for EVs manufactured in neighbouring countries, could undermine that ambition, Thailand needed measures to protect domestic investment, Krisda argued.
“It is what it is. The government decided to put up this barrier,” he said. “Otherwise they have no other measure to protect themselves.”
