Schaeffler Manufacturing (Thailand), a Germany-based producer of automotive and industrial products, is conducting a feasibility study on the development of new mobility technology-related products to serve the growing electric vehicle (EV) industry in Thailand and overseas.
The company is in talks with Thai and foreign companies in the EV industry about a plan to supply the new products, said Micah Shepard, president of automotive after-market and chief executive of Southeast Asia at Schaeffler Asia Pacific.
"The company will focus on automotive technologies, automotive after-market services and other industries with high potential growth in Thailand," he said.
Santosh Poojari, president of automotive technologies at Schaeffler Southeast Asia, said the company sees a business opportunity in battery EVs and plug-in hybrid EVs in Thailand because the government is supporting EV manufacturing, in line with the global trend of green cars. In February the Thai cabinet approved a package of incentives, including tax cuts and subsidies, to promote EV consumption and production between 2022-2023.
Schaeffler expects EVs to command a 50% share of the Asean car market by 2030 because governments are keen to promote more environmentally friendly vehicles. Growing worries over climate change will accelerate growth of the EV industry, it said.
"Schaeffler believes Thailand will have a strong EV industry. The country is currently a key car production base in Asean, which earned it the nickname 'Detroit of Asia'," Mr Poojari said.
Jan Wittenstein, Schaeffler Southeast Asia's director for sales and business development, said global car production is expected to grow by around 2.7% a year, while global GDP is expected to expand by about 3.3%. Asean's overall automotive market is expanding rapidly, with growth expected to hit 6.2% a year.
However, the global automotive industry still faces challenges, including the prolonged semiconductor shortage and logistics problems.