Thailand Eyes Global EV Hub Status Amid US-China Trade Tensions

Speakers exchange their views at the 4th Sweden-Thailand Sustainable Development Forum at Queen Sirikit National Convention Center (QSNCC), Bangkok on September 30, 2024.

BANGKOK — In the wake of ongoing trade tensions between the United States and China, Thailand is emerging as a potential powerhouse in the global electric vehicle (EV) industry.

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This development was highlighted at the recent 4th Sweden-Thailand Sustainable Development Forum, which was part of the Sustainability Expo 2024 (SX 2024), where industry experts and diplomats gathered to discuss sustainable solutions across various sectors during September 27 – October 6, 2024 at Queen Sirikit National Convention Center (QSNCC), Bangkok.

Mrs. Anna Hammargren, the Ambassador of Sweden to Thailand, stated that climate change, plastic pollution, and biodiversity loss are among the key global challenges. She emphasized that countries must double their efforts to address these issues in order to achieve the United Nations’ Sustainable Development Goals.

“Good balance, better world” is the theme of this year’s Sustainability Expo, emphasizing that sustainability can be profitable while improving quality of life for all. For example, EVs and other green mobility innovations, as well as renewable energy, can reduce emissions and contribute to a sustainable future while creating new business opportunities,” she said.

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Mrs. Anna Hammargren, the Ambassador of Sweden to Thailand

Opportunity Knocks for Southeast Asia

The trade war between the world’s two largest economies has created a unique opportunity for Thailand and its neighboring countries to establish themselves as key players in the EV market. Chris Wailes, Managing Director of Volvo Car (Thailand), and Siamnat Panassorn, Vice President of the Electric Vehicle Association of Thailand, both emphasized that while geopolitical factors pose challenges to the global EV industry, they also open doors for countries like Thailand.

Thailand’s Automotive Prowess

Thailand’s existing automotive infrastructure positions it well for this potential transition. The country boasts approximately 2,500 automotive parts suppliers and an industry that employs around 800,000 workers. However, to fully capitalize on this opportunity, Siamnat suggests that the Thai government should introduce additional incentives beyond the current EV policy to help establish Thailand as an export production hub for various types of electric vehicles.

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 Innovations Across Industries

Several examples of sustainable innovations were showcased:

  • Saab’s digital air traffic control towers, which could revolutionize air transportation. Its innovative digital air traffic control towers are ushering in a new era of green air transportation. Using state-of-the-art video cameras and other features, Saab’s digital towers can replace traditional high-rise towers at international and regional airports around the world, thus reducing manpower needs, improving services, and contributing to a more sustainable development model.
  • Alfa Laval’s carbon-neutral solutions for palm oil production. Regarding green food production, palm oil serves as an example. Thailand, one of the world’s top three producers, generates 1.1 percent of its GDP from palm oil. To mitigate environmental impacts from palm oil production, Alfa Laval has developed carbon-neutral solutions, transforming the “dirty business” of palm oil production into a greener industry by managing methane emissions.
  • SKF’s “re-refining” process for motor oil, creating a circular oil-use process for carbon neutrality, using nano filters and other innovations.

The Future of EV Adoption

Industry experts at the forum noted that advancements in battery and charging technologies are crucial for widespread EV adoption. They predict that when EV prices match those of internal combustion engine (ICE) vehicles and when battery technology achieves a 1,000 km range per charge, the demand for EVs will likely surge.

Thailand’s Current Automotive Landscape

Despite the optimistic outlook for EVs, Thailand’s overall automobile production experienced a slight decline in 2023, with 1.84 million vehicles produced, down 2.2 percent from the previous year. This drop was primarily attributed to decreased pickup truck production, affected by growing household debt and tightened lending policies.

As global efforts to combat climate change intensify, Thailand’s potential transformation into an EV production hub could mark a significant shift in the automotive industry landscape, balancing economic growth with environmental sustainability.

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