Light and Shadow of Thailand Automotive Industry: AM Possibilities Accelerating EV Shift – Part 1

Introduction: Thailand Automotive Industry at a Historic Turning Point

The Thailand automotive industry, long called the “Detroit of Asia,” now stands at a historic turning point. With an annual automobile production capacity of approximately 2 million vehicles, the Thailand automotive industry has remained the regional automotive center, serving as a major base for Japanese manufacturers like Toyota, Honda, and Isuzu, as well as a Southeast Asian production hub for Western automakers such as Ford, BMW, and Mercedes-Benz.

However, the Thai government’s “30@30 Policy”—aiming for 30% of domestic production to be zero-emission vehicles (ZEVs) by 2030—represents a challenge to fundamentally transform the manufacturing paradigm of the Thailand automotive industry. At the center of this transformation lies Additive Manufacturing (AM) technology.

Manufacturing Revolution Driven by Dramatic Parts Reduction

One of the most dramatic changes that the shift to EVs brings to the Thailand automotive industry is the sharp reduction in parts count. While internal combustion engine (ICE) vehicles consist of approximately 30,000 parts, EV vehicles comprise roughly half that number. As complex mechanical systems such as engines, transmissions, and exhaust systems are replaced by electric motors and battery packs, both the variety and number of parts are significantly reduced.

This change has profound implications for the Thailand automotive industry supply chain. Parts manufacturers specialized in ICE vehicles face declining demand. Simultaneously, there is an urgent need to address EV-specific components—battery housings, motor parts, and lightweight structural materials.

However, here lies a paradox. While the number of parts decreases, the design freedom and complexity of each individual part increases. Integrated structures combining multiple parts for weight reduction, complex internal channels for battery cooling, topology-optimized structural components—all of these are shapes that are difficult or economically unfeasible to manufacture using conventional machining or casting methods.

And it is precisely in this domain that AM technology demonstrates its true value, enabling the production of geometrically complex parts that conventional methods cannot achieve.

Responding to High-Mix Low-Volume Production

Another characteristic of the EV market is the diversification of vehicle types and models. In the ICE era, mass production on the same platform over several years was common, but the EV era demands rapid model changes in response to market shifts and diverse variations to meet customer needs.

This means a transition to “high-mix low-volume production” for the Thailand automotive industry manufacturing sites. In conventional mass production using molds, mold fabrication takes several months and costs millions to tens of millions of yen. Mold investment is justified for production volumes exceeding 10,000 units, but it is economically unfeasible for production of hundreds to thousands of units.

AM technology provides one answer to this problem. Requiring no molds and enabling direct part manufacturing from digital data, AM dramatically reduces both manufacturing costs and time in low-volume production. Design changes can be immediately accommodated simply by modifying the data.

For the Thailand automotive industry to continue as the “Detroit of Asia,” it must adapt to this manufacturing paradigm shift.

Chapter 1: Manufacturing Paradigm Changes in Thailand Automotive Industry’s EV Shift

Development Period Competition—New Speed Enabled by AM

A major influence on the Thailand automotive industry EV market comes from the entry of Chinese EV manufacturers. Companies such as BYD, Great Wall Motors (GWM), SAIC Motor, and Neta Auto position Thailand as their base for attacking the Southeast Asian market, advancing aggressive investment and production deployment.

What these companies have brought to the Thailand automotive industry is not merely new products. They are transforming the very “speed” of automotive development. While conventional automakers require 3-5 years to develop new models, some Chinese EV manufacturers reach from concept to mass production in 18-24 months.

One factor enabling this development period shortening is the utilization of AM technology in prototyping and trial production processes. Processes that conventionally required fabricating trial molds and jigs are now shortened to days or weeks through AM. Design verification and improvement cycles are accelerated, dramatically compressing time to market.

Existing automakers with bases in the Thailand automotive industry must also respond to this new speed. Companies unable to quickly adapt to market changes face the risk of losing competitiveness.

Weight Reduction Through AM

EV-specific technical challenges further heighten the necessity of AM technology in the Thailand automotive industry. The foremost among these is “weight reduction.”

EV driving range directly depends on installed battery capacity. However, increasing battery capacity increases vehicle weight, consequently offsetting the driving range improvement effect. The only way to resolve this contradiction is to thoroughly reduce the weight of vehicle components other than the battery.

Here, the true value of AM technology is demonstrated. Complex organic shapes generated by topology optimization—a design methodology that optimizes material placement based on stress distribution—are difficult to realize with conventional manufacturing methods. However, AM can produce shapes exactly as designed.

Even more important is the integration of multiple parts. By manufacturing as an integrated structure what were previously multiple parts assembled through welding or bolt fastening, both joint weight and stress concentration can be eliminated through AM. This leads not only to weight reduction but also to improved structural strength.

For the Thailand automotive industry parts suppliers, responding to such advanced weight reduction technology is a challenge directly connected to survival in the EV era.

Supply Chain Transformation

The EV shift is also transforming supply chain management thinking in the Thailand automotive industry.

In the ICE era, holding large inventories was common, assuming long-term stable demand. However, with the rapid changes and diversification of the EV market, conventional large inventory holdings make flexible responses to design changes and demand fluctuations difficult, increasing inventory risks.

One answer to this challenge is the transition to “on-demand production.” Manufacture what is needed, when it is needed. Minimize inventory and ensure flexibility for design changes.

AM technology is an important means of realizing this on-demand production. In conventional manufacturing methods, production preparation (mold fabrication, process design, inspection jig preparation, etc.) takes time and costs, making low-volume production economically unfeasible. However, with AM, as long as digital data exists, necessary quantities can be manufactured when needed.

Whether the Thailand automotive industry supply chain can adapt to this new production paradigm is not merely a question of individual company technical capabilities but a challenge requiring transformation of the entire industrial ecosystem.

Chapter 2: AM Technology Applications in Thailand Automotive Industry

Jig and Tool Optimization—Converting Existing Lines to EV Production

The industrial value of AM technology in the Thailand automotive industry extends to optimization of the manufacturing process itself.

When existing automotive factories in Thailand convert to EV production, the most time-consuming and costly aspect is the redesign and fabrication of jigs and tools on the production line. ICE vehicles and EV vehicles differ in body structure, assembly procedures, and inspection points, requiring hundreds to thousands of jigs to be newly fabricated.

In conventional methods, these jigs are ordered from external vendors, requiring several months for design, fabrication, and verification. However, by utilizing AM technology, this lead time can be dramatically shortened.

Some companies in the Thailand automotive industry, such as BMW, have installed AM equipment in factories and internalized necessary jig production. Body shapes are digitized through 3D scanning, jigs are designed in CAD, and manufactured through AM in days. Verification is conducted on actual lines, and if problems exist, designs are immediately modified and re-manufactured. By running this cycle at high speed, production line startup periods can be significantly shortened.

Furthermore, AM-produced jigs can achieve ergonomic design tailored to workers’ hands and workload reduction through weight reduction. This has value not only for productivity improvement but also from an occupational safety and health perspective.

Mold Repair and Hybrid Manufacturing

The existing mold assets held by the Thailand automotive industry parts manufacturers possess enormous value. However, wear and damage from years of use are unavoidable.

Here too, AM technology, particularly metal AM (LPBF: Laser Powder Bed Fusion, DED: Directed Energy Deposition), is opening new possibilities.

Damaged portions are removed through machining, material is built up on those portions through AM, and finally the built-up portions are machined to final shape and dimensions. Through this “hybrid manufacturing” methodology, mold lifespan can be extended and investment in new molds can be delayed.

Additionally, AM is opening new possibilities in the manufacture of new molds. While conventional machining could only provide straight cooling water channels, manufacturing molds with AM enables the creation of conformal cooling circuits—complex cooling paths following product shapes—inside the mold. Using hybrid machines that combine machining and AM, both fabrication and machining can be performed in the same machine to manufacture high-precision molds. This enables shortening of molding cycles and improvement of product quality.

Overseas, cases of utilizing such hybrid manufacturing technology for mold repair and new mold manufacture have been reported. AM technology functions not only to “create new things” but also as a tool to “extend the life of existing things,” and particularly the application of repair is likely to expand further in the future.

Chapter 3: Government Support and Ecosystem Supporting Thailand Automotive Industry

Advanced Technology Promotion in the EEC (Eastern Economic Corridor)

The Thai government positions AM technology and other advanced manufacturing technologies as important pillars of national strategy for the Thailand automotive industry. The symbolic policy representing this is the EEC (Eastern Economic Corridor).

The EEC is an economic special zone spanning three provinces—Chachoengsao, Chonburi, and Rayong—and is also the concentration area of the Thailand automotive industry. The Thai government provides incentives such as corporate tax exemptions, import tariff exemptions, and preferential land ownership rights to high-tech manufacturing industries including AM, aiming to nurture this region as a “next-generation industry hub.”

The Thailand Board of Investment (BOI) recognizes cases of up to 8 years of corporate tax exemption for general activities and up to 13 years for high-technology activities for companies introducing AM equipment. This indicates that the government recognizes the technology not merely as a “new machine” but as a strategic technology that is key to Thailand automotive industry structural transformation.

However, an important point is the reality that those who can actually utilize these preferential measures are mainly large manufacturers with foreign capital. Companies with equipment investment capacity and technical knowledge utilize government support to introduce the technology. Whether small and medium-sized suppliers within the Thailand automotive industry can access these support measures is a separate issue.

Synergy with Automation Industries

Another strength of the Thailand automotive industry is the concentration of automation and robotics industries. In automotive production line automation, Thailand is considered one of the most advanced countries in Southeast Asia.

The fusion of this automation technology and AM technology is creating new possibilities for the Thailand automotive industry. For example, by combining robotic arms with metal AM equipment (DED method, etc.), on-site manufacturing and repair of large parts becomes possible. Also, concepts of “self-optimizing production lines” are being examined, where AM-produced jigs and grippers are automatically designed, manufactured, and integrated into robot systems.

Among automation companies in the Thailand automotive industry, some are beginning to provide turnkey solutions integrating AM into robot systems. This suggests the possibility that Thailand may function not merely as a “production base for foreign companies” but as an “integrator of manufacturing technologies.”

Human Resource Development Challenges

However, the Thailand automotive industry AM ecosystem also faces a serious challenge: human resource development.

To effectively utilize AM, knowledge of DfAM (Design for Additive Manufacturing)—design methodologies suited to AM—is essential. The advantages of AM cannot be leveraged with conventional design thinking. Engineers who understand and can practice AM-specific design approaches such as topology optimization, lattice structures, and integrated design of multiple parts are necessary.

Thailand’s universities and technical educational institutions have begun AM education programs, but have not reached the level of supplying personnel at the standards and numbers demanded by the Thailand automotive industry. Many companies hire engineers trained overseas or depend on technology transfer from abroad.

The National Metal and Materials Technology Center (MTEC) of Thailand is promoting AM human resource development programs through industry-academia collaboration, but the scale remains limited. AM research centers have been established at major universities, but reaching a level where graduates can apply AM as immediate forces in the Thailand automotive industry requires further time and investment.

This human resource shortage is an important factor constraining the growth of the Thailand automotive industry AM sector.

Summary and Preview of Part 2

This article has examined how AM is transforming the Thailand automotive industry from the perspectives of technical necessity and industrial ecosystem.

The transition to EVs brings fundamental changes in manufacturing paradigms: parts count reduction, development period shortening, weight reduction demands, and high-mix low-volume production response. AM is one powerful answer to these challenges for the Thailand automotive industry. The Thai government’s EEC policy and BOI investment incentives are advancing environmental preparation for AM introduction. Fusion with the automation industry and accumulation of specific use cases are also progressing.

However, whether these “possibilities” actually become “reality” is a separate matter.

The Thailand automotive industry has structural realities that cannot be seen through technology discussions alone. These are the decision-making structures of supply chains, the relationships between parent companies and subcontractors, and the fundamental question of “who truly holds decision-making power.”

In Part 2, we focus on this structural reality. Who determines whether Thailand automotive industry suppliers can introduce AM? Why do differences in parent company strategic stances polarize the future of the Thailand automotive industry into “light” and “shadow”? We reveal the true nature of the Thailand automotive industry hidden behind the title “Detroit of Asia.”

> Light and Shadow of Thailand Automotive Industry: AM Possibilities Accelerating EV Shift – Part 2