Bangkok Post - Auto parts makers eye new markets

Spread of EVs posing a threat to business

PUBLISHED : 18 Oct 2024 at 05:45

WRITER: Lamonphet Apisitniran

Thai auto parts manufacturers for internal combustion engine (ICE)-powered vehicles may need to look for new markets overseas as the popularity of electric vehicles (EVs) threatens to disrupt their business, says Tru Automotive Co, a supplier of auto parts under the TRW brand.

Sales of auto parts for ICE cars are projected to keep falling because they are not used by EV makers, said Pornsak Ariyapongpairoj, managing director of Tru Automotive.

This will cause parts makers to seek new customers in countries where ICEs are still widely used and governments are not heavily promoting and subsidising the use of zero-emission cars, he said.

"The Thai government is promoting EV usage under the 30@30 scheme, aiming to support the global campaign for net-zero targets," said Mr Pornsak, referring to the effort to strike a balance between greenhouse gas emissions and absorption to slow down a rise in the world's temperatures.

Under its 30@30 policy, Thailand expects EVs to represent at least 30% of total motor vehicle production in the country by 2030 through the production of 725,000 zero-emission cars, 675,000 electric motorcycles and 34,000 electric buses and trucks.

Mr Pornsak expects the market value of auto parts in Thailand to reach 200 million baht this year, equal to the value recorded in 2023.

His company has teamed up with ZF Group, a German-based supplier of products and systems for the car industry, to boost domestic sales of auto parts, especially brake and suspension systems, under a campaign called "TRW x Transformers".

Buyers of their products will be given souvenirs from the Hollywood movie Transformers, an action sci-fi film about giant robots.

"We expect this campaign to increase sales by 25% because customers aged over 30 years old are fans of Transformers," said Mr Pornsak.

ZF Group is aware of the impact of EVs on manufacturers of auto parts for the ICE segment. It is seeking business opportunities in high-potential markets like India and Indonesia where a number of drivers use ICE-powered cars, said Ravikumar Loganathan, head of the business line passenger car strategy at ZF Aftermarket, a subsidiary of ZF Group.

In Thailand, despite the popularity of EVs, auto parts makers can still sell their products to the ICE market because zero-emission cars are projected to comprise only 30% of total car production, he said.