Thailand's automotive sector—historically built on Japanese combustion-engine manufacturing—faces a critical strategic inflection as Chinese EV makers establish production bases with government incentives. The article warns of a "dangerous transition" where traditional suppliers lose ICE contracts faster than they can pivot to EV supply chains (batteries, motors, power electronics), while new foreign EV entrants may bring their own suppliers. The core challenge: Thailand must shift from volume-based manufacturing to value-added industrial capability, ensuring Thai SMEs supply critical EV components and R&D anchors locally, not just final assembly.
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