Auto parts makers can survive the shift to EVs

Auto parts makers can survive the shift to EVs, but losses loom for those that cannot adapt, writes
It's been over two years since the government laid a foundation for electric vehicle (EV) production in the country. The scheme has garnered 20-30 investment applications, covering car assembly, vital parts manufacturing and EV charging stations.
The Board of Investment (BoI) has yet to grant investment incentives to all applicants, saying it's considering many for plug-in hybrid EVs, battery EVs, electric buses and EV parts worth a combined 1.4 billion baht. It's also looking at applications for charging station projects worth 36 billion baht.
BoI secretary-general Duangjai Asawachintachit said the agency has approved nine EV projects worth 51 billion baht for car assembly. They comprise four hybrid EV projects, four plugin hybrid EV projects and one battery EV project.
Toyota and Honda have already started manufacturing in Thailand for their hybrid EV projects, while MercedesBenz and BMW applied for incentives for plug-in hybrid EVs.
FOMM battery-powered cars are available for commercial sale now, but sales have not been tallied because the vehicle is categorised as a quadricycle or fourwheeled micro-car.
The remaining four applicants - Nissan, Mazda, SAIC Motor-CP and Mitsubishi - have yet to announce or start their assembly lines for EVs.
The BoI in March agreed to renew incentive packages given to hybrid EVs in a bid to lure more investment.
Ms Duangjai said many investors were required to submit their applications for hybrid cars in 2019, while assembly of battery EVs is required within three years.


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