Thailand holds an advantage over other Southeast Asian countries by providing automotive manufacturers with many incentives, according to sources at suppliers.
As the manufacturing sector shifts from China to diversify geopolitical risks and for pandemic reasons, Thailand is poised to be the top destination for automotive suppliers, sources said.
Thailand's automotive industry has a solid foundation that electric vehicle (EV) manufacturers can take advantage of.
The country's automotive industry has been one of its main sources of income; its salary growth for workers lags behind some fellow SEA countries. Regulations for foreign workers are also relatively easy to follow so suppliers are able to recruit more workers from neighboring countries, the sources said.
Thailand is the second-largest economy in the region with well-built automotive, electronics and ICT industries, making it attractive for suppliers. It also provides tax reduction, subsidies, and incentives for suppliers.