
The Electric Vehicle Transition: Assessing its Impact on Thai Automotive Parts SMEs
Abstract
This study investigates the multifaceted impacts of the global transition towards electric vehicles (EVs) on Small and Medium-sized Enterprises (SMEs) operating within Thailand's automotive parts industry. As a significant automotive manufacturing hub, Thailand faces both opportunities and challenges in adapting to this paradigm shift from traditional internal combustion engine (ICE) vehicles. This research employs a qualitative approach, utilizing in-depth interviews with key stakeholders from automotive parts SMEs, industry associations, and government bodies to explore their awareness, perceived challenges, adaptation strategies, and opportunities arising from the EV transition. The findings reveal that while many SMEs recognize the inevitability of the shift, they face significant hurdles related to technological obsolescence, the need for substantial investment in new production capabilities, skill gaps in their workforce, and intense competition. Conversely, opportunities exist in developing new EV-specific components, leveraging government incentives, and forming strategic partnerships. This study underscores the critical need for targeted policy support, capacity building, and collaborative initiatives to enable Thai automotive parts SMEs to successfully navigate the EV transition, ensuring their sustained competitiveness and contribution to the national economy.
Keywords
Electric Vehicles (EVs), Automotive Parts Industry, Small and Medium-sized Enterprises (SMEs)
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