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Periodic chip shortages have continued to drag on auto supply chains, in particular on the OEM market. The Thai auto parts industry thus grew at a slower pace through 2022. The situation will remain somewhat unfavorable through 2023 and a combination of a global slowdown, which will adversely affect consumer demand, and a continuation of US-China tensions, which are impacting chip production, will mean that auto parts manufacturers will see only sluggish growth in the year. However, conditions should improve in 2024 and 2025

The Thai auto parts sector is forecast to see continuing growth through the period 2019-2021 on annual increases in domestic demand of 0-5%. This demand will be both for parts used in the assembly of new automobiles and motorcycles (the OEM market) and for spares and replacement parts (the REM market), demand for which will expand in step with the increasing size of the national vehicle fleet.

In 2020, the Thai auto parts industry is likely to contract in line with the automotive manufacturing industry. Effects of the COVID-19 virus outbreak

Overall, Thailand’s automotive parts production is projected to expand by 1.5–2.5% per year over 2026–2028. This growth is driven mainly by increased manufacturing capacity for electric vehicle (EV)

Updated the key Industry Indicator: Auto Parts in each industry.By Wanna Yongpisanphob

Updated the key Industry Indicator: Auto Parts in each industry.By Wanna Yongpisanphob

The auto parts industry has been continuously promoted by the Thai government since 1963

These include automobiles, motorcycles, auto parts, and electrical and electronic appliances

The Thai plastics industry can look forward to ongoing growth over 2024-2026 thanks to continuing domestic and global economic expansion, which will then support stronger demand from downstream manufacturers, including players in the packaging, autos and auto parts, electronics and electrical appliances, construction, and medical devices industries. In addition, government schemes to promote investment in the ‘new S-curve’ industries will benefit plastics manufacturers embedded in these supply chains.