Thailand's automotive industry—once a cornerstone of the economy—faces a critical transition amid EV adoption and increased global competition. While the government has invested heavily in attracting foreign car manufacturers, local SME parts suppliers are being marginalized: BOI investment requests from Thai private companies have fallen from 41% to 25%, and automotive SME promotion projects dropped from 14 in 2024 to just 1 in 2025. The core competitive advantage—Thailand's mature supplier ecosystem—risks dissolution unless the state strategically supports local parts makers (now likened to "farmers" in the supply chain) with capital, technology access, and fairer buyer relationships.