Thailand, Southeast Asia’s automotive hub, is undergoing a
major transformation as it shifts from internal combustion engine (ICE)
vehicles to electric vehicles (EVs). The government’s “30@30” vision aims for
30% of domestic vehicle production to be EVs by 2030, supported by two key
incentive packages: EV 3.0 (2022-2023), which introduced subsidies and local
production requirements, and EV 3.5 (2024-2027), which tightens local
production ratios and expands support to commercial EVs. While the shift has attracted
foreign investment and positioned Thailand as a rising EV production base, it
has also created challenges, particularly for traditional auto-parts SMEs
specializing in ICE components. Economic disruptions, such as job displacement
and supply chain disruption, are significant in the short term. However, with
coordinated policies, Thailand has an opportunity to turn its automotive sector
into a new engine of productivity, innovation, and sustainable growth.
Read more: Cllck!
December 29, 2025
