On June 19, the 2024 SMM Southeast Asia (Thailand) Automotive Supply Chain Conference, hosted by SMM, concluded successfully in Pattaya, Thailand!
The conference invited association experts and industry giants to jointly discuss the current status and future development trends of the automotive industry from a global perspective. SMM hopes that through this conference, Chinese automotive industry chain companies can better understand the overseas investment environment and fully leverage the complementary advantages of different countries and regions within the automotive industry to jointly promote the healthy and sustainable development of the automotive industry
At the conference, Wirat Tatsaringkansakul, Deputy Secretary General of Thailand Board of Investment (BOI) and Secretary of the National Electric Vehicle Policy Committee (EV Board), stated that by 2026, the offset production of imported CBU vehicles must be conducted domestically at a ratio of 1:2, or at a ratio of 1:3 by 2027; imported and locally produced batteries for battery electric vehicles (BEV) must meet specified test standards; and BEV must support the use of fast chargers.
SMM Deputy General Manager Yi Yanting stated that over the next seven years, the cumulative demand for steel in Thailand's local automotive industry will exceed 15 million mt, with an average annual growth of about 3%. Regarding the demand for automotive steel from Thailand to major countries along the US route, by 2030, the steel demand driven by automotive demand will approach 50 million mt, and the cumulative market scale for automotive steel over the next seven years will reach approximately 250 million mt.
Pang Jun Jie, Executive Committee Member of Zero Emission Vehicle Association (ZEVA), stated that the market for BEV in the six ASEAN countries saw a significant increase of 316%, with sales reaching 141,095 units in 2023. Malaysia showed the third highest growth among the six ASEAN countries.
Guest Speeches
SMM CEO Fan Xin
》Click to watch the guest speech video
HBIS-Deputy General Manager of Marketing Center-Diao Ke shan
》Click to watch the guest speech video
Guest Speech
Topic: Latest Policies in Thailand's Automotive Industry
Guest Speaker: Deputy Secretary General of BOI and Secretary of EV Board-Wirat Tatsaringkansakul
EV3.5 Subsidy Plan and Ministry of Finance Tax Incentives
- CBU vehicles are allowed to be imported during 2024-2025, and the offset of imported CBU vehicles must be conducted under the following conditions;
- By 2026, the offset production of imported CBU vehicles must be conducted domestically at a ratio of 1:2, or at a ratio of 1:3 by 2027;
- Imported and locally produced BEV batteries must meet specified test standards;
- BEV must support the use of fast chargers;
- Locally produced batteries must be used by 2026 (further requirements can be found in the excise department announcement);
- A Memorandum of Understanding (MoU) must be signed and a tax incentive approval letter from the excise department must be obtained;
- A bank guarantee must be provided.
BOI Introduces New Measures to Support the Adoption of Automation and Robotics Technology and Battery Manufacturing
►BOI Incentives:
Corporate income tax exemption for 3 years, with a 50% tax credit for investments in automation systems and robots.
Exemption from import duties on machinery equipment.
Topic: Outlook on the Southeast Asian Automotive Supply Chain Market
Speaker: SMM Vice President-Yi Yanting
ASEAN crude steel production is growing rapidly, with long-shaped products accounting for about 56%, but there is a lack of high-end products.
Benefiting from the "Belt and Road" initiative, Vietnam, Malaysia, Indonesia, and Thailand are actively engaging in international capacity cooperation with countries along the route. The crude steel production of these four ASEAN countries has been continuously increasing, entering a period of rapid growth after 2016, with a growth rate surpassing the previous 20 years. From 2016 to 2022, crude steel production increased from 20.72 million mt to 57.09 million mt, with a compound growth rate of 23%.
The demand for automotive steel in Thailand and neighboring countries will reach nearly 250 million mt over the next seven years.
• It is estimated that over the next seven years, the cumulative demand for steel in Thailand's local automotive industry will exceed 15 million mt, with an average annual growth of about 3%.
• Regarding the demand for automotive steel exported from Thailand to major countries along the US route, by 2030, the steel demand driven by automotive demand will reach nearly 50 million mt, and the cumulative market size for automotive steel over the next seven years will reach approximately 250 million mt.
Chinese car companies and local processing factories
It is expected that by 2024, the production capacity of Chinese companies will account for 35% of total sales, but the steel processing capacity seems limited.
• Currently, 70% to 80% of electric vehicles in the Thai market come from Chinese companies, and Chinese companies have already set up a large amount of electric vehicle production capacity in the short term. However, the local steel processing capacity is limited, making the establishment of a local supply chain imperative.
Speech Topic: Malaysia's Electric Vehicle Industry - How Favorable Policies Support Progress
Speaker: Executive Committee of Malaysia Zero Emission Vehicle Association-Pang Jun Jie
The Malaysian government, in its recent 2024 budget announcement, showed continued support for electric vehicles by extending the existing tax exemption scope.
Additionally, manufacturing incentives for electric vehicle chargers were introduced.
►CBU import and excise tax exemption extended to 2025.
►CKD import and excise tax exemption extended to 2027, with sales tax also set to zero.
►A 3-year tax rebate of up to RM300,000 for electric vehicle leasing.
►A 2-year tax deduction for electric vehicle leasing.
The pure electric vehicle (BEV) market in the six ASEAN countries saw significant growth of 316%, with 2023 sales reaching 141,095 units. Malaysia showed the third highest growth among the six ASEAN countries.
High growth: Thailand had the highest sales of pure electric vehicles in the region, with 2023 sales reaching 76,314 units, a YoY growth of 684%. This growth is attributed to a favorable regulatory environment and multiple global original equipment manufacturers.
Moderate growth: Indonesia and Singapore both saw moderate growth in pure electric vehicle sales. In Indonesia, Hyundai and Wuling emerged. Singapore showed stable performance, but the growth rate of electric vehicle sales was relatively low.
Low growth: The Philippines had the lowest growth rate in pure electric vehicle sales. This relatively slow growth can be attributed to factors such as limited power infrastructure, high initial costs, and challenges in developing charging infrastructure.
Topic: The Current Status and Future of Electric Vehicles in India
Speaker: Ather Energy Private Limited, Chief Procurement Officer, Harendra Saksena
The Best Time to Manufacture Electric Vehicles in India
The importance of electrification in the country is increasing.
Increasing the penetration rate of electric vehicles
The share of electric vehicles is expected to grow at least eightfold from FY2024 to FY2030.
Topic: ChipLink Integrated Overseas Insights
Speaker: Xinlian Power, Chairman, Yuan Feng
(Content not disclosed at the request of the speaker)
Topic: Electrification of Electric Motorcycles in Thailand
Speaker: Farasis Energy, Senior Sales Manager, Peng Xiuping
(Content not disclosed at the request of the speaker)
Topic: United by Common Goals, Distance is No Barrier - HBIS Overseas Layout
Speaker: HBIS, Head of Export Department, Gao Feng
(Content not disclosed at the request of the speaker)
Roundtable Interview
Topic: Challenges and Opportunities in the Electrification of the Southeast Asian Automotive Industry
Host:
SMM, Senior Vice President, Hu Jian
Guests:
- BearingPoint (Shanghai) Business Management Consulting Co., Ltd., Head of Business and Operations in Asia Pacific, Ye Tiande
- RUTRONIK Electronics Worldwide, Senior Manager, Peter Klöpfer
- Thai-Chinese Rayong Industrial Realty Development Company Limited, President, Zhao Bin
- Boston Consulting, Managing Director, Lars Maecker
》Click to watch the live video
Topic: Accelerating the Electrification Transition in Thailand from a Supply Chain Perspective
Host:
Boston Consulting, Managing Director & Partner, Li Ke
Guests:
- ASEAN Federation of Engineering Organizations (AFEO), Chairman of the Transport and Logistics Working Group, Tongkarn Kaewchalermtong
- China Foundry Association, Executive Vice President, Gao Wei
- NETA Auto Thailand Co., Ltd., General Manager of Procurement Center, Fang Xiaokun
- Schaeffler, President and CEO in Asia, Micah Shepard
- Changan Automobile, Vice President in Southeast Asia, Guan Xin
》Click to watch the live video
Topic: Investment Risks and Financing Capabilities in the Automotive Industry
Host:
ABeam, Senior Expert in Automotive and Manufacturing, Krzysztof Tokarz
Guest:
Hyundai Motor, Head of Singaporean Branch, David Goh
》Click to watch the live video
Topic: Green Supply Chain for Automotive Materials
Host:
SMM, Vice President, Zhou Bo
Guests:
- HBIS, Deputy General Manager of Marketing Center, Diao Keshan
- Bureau Veritas Group, Director of Building and Infrastructure for Emerging ASEAN Countries and Thailand / CEO of Commodities, Industry, and Facilities for Myanmar and Cambodia, Martin DILLY
- Dinghao International New Material Technology (Thailand) Co., Ltd., Chairman, Gu Binhua
》Click to watch the live video
Topic: Experience Sharing of Parts Production Localisation and Automotive Parts Companies Expansion to Southeast Asia - Production Costs, Manufacturing Technology, Cost Advantages, Intelligent Manufacturing, etc.
Host:
Thai/Vietnam WHA Industrial Zone China Branch, General Manager and Chief Representative, Zhao Di
Guests:
- Delta Metal (Holdings) Limited, Chairman/CEO, Zhao Rong
- SEVB, General Manager, TONY
- Baosteel Singapore Pte Ltd, Chief Representative of Thailand Representative Office, Shi Yuan
- SVOLT Thailand, General Manager, Chen Lei
- NewThai Wheel Manufacturing Co., Ltd., General Manager, Zheng Jinsong
》Click to watch the live video
Sign-in
》Click to see more on-site highlights
》Click to watch the live video replay
This is the end of the 2024 SMM Southeast Asia (Thailand) Automotive Supply Chain Conference. Thank you for your attention and support. See you next year!
