Search

The Thai electronics industry is forecast to return to healthy rates of growth over the three years from 2021 to 2023 thanks to a number of different developments on the technology front. In particular, demand for electronics parts will be boosted by the development and rollout of 5G technology and the need for equipment that supports this, and by the increasing market penetration of smart cars, which will in turn encourage a greater uptake of hyperconnected internet of things (IoT) applications. These changes to the commercial landscape will then drive stronger demand for integrated circuits (ICs) and hard disk drives (HDDs), especially for the large-capacity HDDs that are used in data center and cloud computing applications, where demand for big data applications is growing rapidly. In terms of consumer demand, the COVID-19 pandemic has also helped to precipitate a sudden explosion in working from home and distance learning that has then translated into stronger sales of PCs, notebooks, tablets and smartphones. Meanwhile, the shortage of ICs that was weighing on the industry (especially for use in auto assembly) should begin to dissipate in 2Q21, because production capacity has now risen on greater investment expansions from technology-leaders.

Automobile production growth is projected to remain flat at around -0.5% to 0.5% annually during 2025–2027

The automobile industry in 2020 is likely to shrink strongly. The result of the global COVID-19 virus outbreak. Disrupted the automobile production chain

The auto industry will see continuing growth through the period 2023-2025 thanks to a combination of factors. (i) The recovery in the overall economy and purchasing power with softer inflationary pressure (ii) Although conflicts between the US and China over access to technology will mean that periodic problems with chip shortages will persist through 2023, greater investment in production capacity in the US, Germany, and Japan will translate into increased output, and so in 2024 and 2025, semiconductor supply problems should ease. (iii) Government measures to stimulate demand for battery electric vehicles will continue to support the market. (iv) Government spending on infrastructure development, growth in logistics and online retail,

Automobile production is projected to expand gradually by 0.5-1.5% per year during 2026-2028, driven by increased manufacturing investment and excise tax reductions for hybrid vehicles (HEVs and MHEVs).

Auto production is forecast to drop by -3.5% to -2.5% annually from 2024 to 2026 as a result of weakness in the domestic market through 2024 and greater competition from imported EVs. However, output should improve somewhat in 2025 and 2026. Domestic sales in 2024 will decline by -4.5% to -3.5%

The EV price war in Thailand began in 2022 due to intensifying market competition, forcing EV manufacturers to cut production costs to maintain profitability.

China reopening and impact on Thailand’s economy

EVs in ASEAN Thailand vs Indonesia: Leading and Rising EV Production Hub

Middle East tensions persist, trade war risks rise, China’s growth remains uneven, and Thai economic slowdown keeps rates on hold.