Thai Auto Parts Makers Urged to Enter Medical Devices Market

[webfact]

 

The Federation of Thai Industries (FTI) is urging local auto parts manufacturers to adapt to the technological disruption caused by electric vehicles (EVs) and transition to producing medical devices, which are projected to have a promising future.

 

According to the FTI, auto parts makers accustomed to internal combustion engines are finding it difficult to adapt to electric mobility technology, as many of their products are no longer needed by EV makers. FTI Vice-Chairman Isares Rattanadilok Na Phuket sees this shift as an opportunity to stimulate the economy in different sectors.

 

“We will discuss this shift with the government and hope to create new product champions in the medical field. This can become another effort to stimulate the economy.”

 

A cluster under FTI Mobility-ONE, a new unit within the federation, advocates auto parts producers to pivot to manufacturing medical products. These products include both single-use devices like diagnostic test kits and durable items such as wheelchairs and hospital beds.

 

This cluster, known as CFM-ONE, was established last year to support the development of Thailand’s automotive industry and assist car and auto parts companies in overcoming business challenges.

 

The FTI includes up to 1,700 auto parts manufacturers, most of which are small or medium-sized original equipment manufacturers categorised as tier 2 and tier 3 in the auto parts supply chain. Tier 1 producers are typically subsidiaries of global car companies.

 

Second and third-tier manufacturers, experienced in plastic stamping and processes involving rubber and electronics, have the potential to transition to producing medical devices.

 

Krungsri Research predicts robust growth for Thai medical device manufacturers from 2023 to 2025. The value of goods distributed domestically and internationally is expected to increase by an annual average of 5.5 to 7.0% and 6.5 to 7.5%, respectively.

 

Several factors will drive market growth, including an ageing society and the corresponding rise in illness rates, the threat of newly emerging diseases, increased interest in preventive healthcare post-pandemic, and growing demand for medical tourism.

 

Wellness and medical tourism is one of the government’s 12 targeted S-curve industries with significant growth potential. According to Krungsri Research, Thailand is globally recognised for its high quality of care and low costs.

 

CFM-ONE has previously stated its intention to collaborate with global car manufacturers to assist local auto parts makers who wish to remain in the automotive industry in transitioning to producing parts for electric vehicles.

 

Picture courtesy Polar Seal

 

-- 2024-06-18

 

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[Pouatchee]

it would cost a pretty penny to adapt, but may be a smart move. however, if it is true about the rare mineral deposit they allegedly found they might think about ev car batteries as another alternative. right now, china pretty much has the only viable supply.... but i wonder what uncle xi would think about that

[redwood1]

Hey if you need a new hart just use a Toyota water pump instead.....This will work great...

[FritsSikkink]

1. Production machines would be useless for the new products = new machines
2. Staff would be useless for the new products => new staff (redundancy money for old staff), retraining maybe possible but how long would it take?
3. Medical equipment has to comply with GxP compliancy rules, need people who know about this. 

No way they would have the money and time to invest in this. Nothing more than wishful thinking.

[Purdey]

Diesel generators to recharge EVs.

[hotchilli]

4 hours ago, webfact said:

“We will discuss this shift with the government and hope to create new product champions in the medical field. This can become another effort to stimulate the economy.”

An who exactly is going to rip-out all the old redundant machinery, pay for the new machinery, install and test it.

Then re-train personnel in how to operate it to do their new job?

[Srikcir]

Have a cataract in one eye? Just replace with a small LED.

Need a heart transplant? A 3D printed carbon fiber heart to the rescue.

[Grusa]

As I remember, Ford were meant to be making bulk pulmonary ventilators for Covid victims. I never heard much more about that, except that a ventilator was a near 100% death sentence.......?