Thailand is preparing to become a global production hub of electric vehicles (EVs), as demand has risen rapidly over the past five years and is expected to keep growing, says Science and Technology Minister Pichet Durongkaveroj.
Being an EV hub would help the country capitalise on strong demand for EV auto parts and batteries.
"EVs are expected to be the new industry trend, reducing carbon dioxide emissions and saving limited oil resources," Mr Pichet said at the opening ceremony of this year's Auto Parts Tech Day at Thailand Science Park in Pathum Thani province.
He said the ministry planned to train staff and prepare facilities for EVs and offer investment privileges to attract investors.
If the government promotes production of EV batteries, it could lead to breakthroughs in storage systems used for wind and solar power, Mr Pichet said.
The ministry plans to coordinate with government universities to set up fuel cell training courses to be included in the area of mechanical engineering with the goal of creating EV experts to meet rising demand.
For facility preparation, the ministry has allocated Thailand Science Park as an EV parts research and development (R&D) centre.
The ministry also expects to designate an industrial estate as a special-innovation zone (SIZ) shortly to create new products for the EV sector.
To create an SIZ scheme, the Science and Technology Ministry will discuss incentive packages for eligible investors with the National Economic and Social Development Board and the Board of Investment.
Mr Pichet said many utilities and businesses were already running EV testing including PTT Plc, the Metropolitan Electricity Authority, the Provincial Electricity Authority and universities. Vehicles range from small sedans to large buses.
"The global automobile industry is focusing on EVs and biofuel vehicles, while Thailand is a hub for one-tonne pickups and eco-car production. It's a natural fit for the country to prepare for EV output," he aded.
Science Park diector Janekrishna Kanatharana called auto parts "a big tenant" in the park. It is a hub for R&D activity in other sectors such as food, petrochemicals, medical devices and equipment.
The park has an occupancy rate of 90% in its first phase and 50% in the second phase, with a total area of 300,000 square metres.
"The park provides full R&D testing equipment and research for the auto-parts sector," Mr Janekrishna said.
It plans to create a metrology, standards, testing and quality programme this year, which will follow international safety standards.
Somkiat Chupukcharoern, president of the Thai Subcontracting Promotion Association, said the country had the potential to be an EV and parts hub since it already made cars.
"We expect Thailand will be an EV hub in five years, when the country fully upgrades to match the technology," he said.