Thailand’s EV industry and the rise of Industry 4.0

Thailand is rapidly emerging as a strategic hub for electric vehicle (EV) production and Industry 4.0 adoption in Southeast Asia. As the world transitions toward greener transportation and smarter factories, Thailand is positioning itself as a competitive manufacturing base through strong government incentives, a well-developed automotive ecosystem, and a growing focus on advanced technologies. This transformation is not only reshaping the local industrial landscape but also attracting global attention from leading automakers and technology providers.

A Decade of Change: From ICE to EV

Thailand has long been recognised as the “Detroit of Asia,” producing over 2 million internal combustion engine (ICE) vehicles annually and hosting major international automakers such as Toyota, Honda, Mitsubishi, and Isusu. However, the country is now pivoting toward the future with a bold goal: to become a leading EV production hub by 2030.

In 2022, the Thai government unveiled its “30@30” policy—aiming for 30% of total car production in the country to be electric vehicles by 2030. This includes not only battery electric vehicles (BEVs) but also plug-in hybrids and electric motorcycles. To support this vision, a series of incentives have been rolled out:

• Tax breaks and subsidies for EV manufacturers and buyers
• Import duty reductions for EV components and batteries
• Investment promotion from the Board of Investment (BOI) for EV production plants

As of early 2025, companies like BYD, Great Wall Motor, and Tesla have already made significant moves in Thailand. BYD, for instance, began operations at its new EV plant in Rayong, while Great Wall Motor is ramping up its Ora electric car series for regional and global markets.

Accelerating EV Ecosystem Development

Thailand’s growing EV industry is not limited to vehicle assembly. The country is actively building an integrated supply chain, from battery production to charging infrastructure and raw materials processing.

PTT Group, one of Thailand’s largest energy conglomerates, has partnered with Foxconn to develop a smart EV manufacturing platform under the brand Horizon Plus. This venture aims to produce EVs with smart features and localised content, boosting domestic capabilities in key technologies.

On the infrastructure side, companies like EA Anywhere, Shell Recharge, and PTT's own EV charging network are rapidly expanding charging stations across highways and urban centers. By 2025, Thailand plans to have over 12,000 public EV charging stations nationwide—supporting not just passenger cars, but also logistics fleets and public transport.

Battery recycling and second-life battery use are also becoming part of the ecosystem, ensuring that the transition to EVs remains sustainable and circular in nature.

Industry 4.0: Smart Manufacturing for the EV Age

The rise of Thailand’s EV sector is closely linked with its adoption of Industry 4.0 technologies. As EV production involves different components, materials, and precision requirements compared to traditional ICE vehicles, Thai manufacturers are increasingly integrating smart factory solutions to meet these challenges.

Industry 4.0 refers to the digitisation of manufacturing using technologies such as:

• Artificial Intelligence (AI) for quality control and production optimisation
• Internet of Things (IoT) sensors for predictive maintenance and energy efficiency
• Autonomous robots for material handling and assembly
• Digital twins and simulation platforms to optimise design and production workflows

Eastern Economic Corridor (EEC) provinces—Chonburi, Rayong, and Chachoengsao—have become central to this transformation. The Thai government is encouraging high-tech investment in these zones, offering incentives for smart factory upgrades, vocational training, and joint R&D projects between local institutions and multinational firms.

Thai-based companies such as Delta Electronics and SCG are integrating these technologies to improve productivity, reduce waste, and ensure competitiveness in the regional supply chain.

Foreign Investment and Regional Connectivity

Thailand’s strategic location in the heart of ASEAN makes it a natural hub for EV exports and industrial cooperation. With free trade agreements (FTAs) across ASEAN, China, and the EU, manufacturers in Thailand can access over 660 million consumers with preferential tariffs.

Foreign direct investment (FDI) in Thailand’s EV and smart manufacturing sectors is surging. Chinese firms, in particular, are leading the way—not just in vehicle assembly, but also in lithium-ion battery manufacturing and robotics. Japanese and Korean suppliers are also scaling up operations to support Toyota’s and Honda’s EV production lines.

The ASEAN Smart Cities Network (ASCN) further complements this development, creating regional demand for clean mobility and smart transportation solutions—many of which will be produced in Thailand.

Challenges and Outlook

Despite its momentum, Thailand faces several challenges in achieving its EV and Industry 4.0 ambitions:

• The local supplier base must adapt quickly to new EV components and standards.
• Workforce upskilling is essential to operate advanced manufacturing systems.
• Power grid upgrades and renewable energy integration are needed to ensure EV sustainability from “well to wheel.”

That said, the outlook remains optimistic. With strong government support, a mature automotive ecosystem, and an openness to international partnerships, Thailand is well on its way to becoming a powerhouse in next-generation mobility and smart manufacturing.

Thailand’s EV revolution is more than just a shift in vehicle propulsion—it represents a national commitment to innovation, digital transformation, and sustainability. By aligning its automotive strengths with Industry 4.0 technologies, Thailand is creating a dynamic industrial ecosystem that is smart, connected, and future-ready.

For investors, suppliers, and tech providers across Southeast Asia and beyond, Thailand presents a compelling opportunity to be part of the next wave of industrial growth—one that’s electric, automated, and sustainable from the ground up.