Thailand has set a target for electric vehicles (EVs) to account for 50% of total car production by 2035, as officials warn that more than 110,000 workers could face disruption from the industry transition.

Get today's headlines by email

The National Economic and Social Development Council (NESDC) said in its first-quarter 2026 social conditions report that Thailand’s EV sector is expected to continue expanding. Between 2026 and 2028, new registrations of electric passenger vehicles are forecast to reach 125,000 units annually, representing average yearly growth of 3.8%.

The government has already set a goal for EV production to account for at least 30% of all vehicle manufacturing by 2030, rising to 50% by 2035. As a result, production of internal combustion engine vehicles is expected to decline steadily over the coming decade.

The shift is expected to have a significant impact on automotive parts manufacturers, particularly Tier 1 suppliers delivering directly to vehicle assemblers and Tier 2 suppliers further down the supply chain. Many of these companies remain heavily dependent on conventional engine vehicle production.

According to the NESDC, EVs require far fewer components than traditional petrol-powered vehicles. The number of local parts used could fall from around 2,000 in conventional vehicles to as few as 20 in EV production, increasing pressure on manufacturers and workers tied to existing supply chains.

Earlier estimates from Krungthai COMPASS suggested that during 2026, more than 110,000 workers, or 16.3% of Thailand’s automotive industry workforce, could face the risk of moving into other sectors. The report cited persistently low levels of Thai vehicle production and the inability of some parts manufacturers to adapt quickly enough to the transition towards EVs.

The NESDC said relevant government agencies should introduce measures to support both businesses and workers affected by the changes. Suggested measures include helping manufacturers adjust production lines towards new industries such as EV components and medical equipment manufacturing.

The warning comes as Thailand continues positioning itself as a regional EV manufacturing hub, attracting investment from international carmakers and battery producers. However, officials acknowledged that the transition could create labour market disruption if companies and employees are unable to adapt quickly.

The Standard reported that further government policies and industry support measures are expected to be considered as Thailand works towards its long-term EV production targets while attempting to minimise the economic impact on suppliers and workers.

Join the discussion?

Already a member?

Adapted by ASEAN Now TheStandard 2 June 2026

View full article

There are plans and already opponents.. Progress is not done in Thailand... People will loose their job indeed, but it creates also many new opportunities.. Re education for good mechanics, installers of loading points, and so on... Everything can be done, but the old conservative thinking will hold everything back

This is ridiculous. Most of these pie in the sky mandates have been rolled back around the world. Thailand is 5+ years behind

50 minutes ago, Harsh Jones said:

This is ridiculous. Most of these pie in the sky mandates have been rolled back around the world. Thailand is 5+ years behind

It's already happening, like it or not.

Mandate or not, EV sales are increasing year on year - only the backwards US is not keeping pace.

It is inevitable.

6 hours ago, Harsh Jones said:

This is ridiculous. Most of these pie in the sky mandates have been rolled back around the world. Thailand is 5+ years behind

In this case is it not manufacturing that is being forced as opposed to purchases? That leaves 50% of production as non EV, presumably ICE, to be sold to countries who have not hamstrung themselves and killed off their own production.

It's already happening, like it or not.

Mandate or not, EV sales are increasing year on year - only the backwards US is not keeping pace.

It is inevitable.

Perhaps that's because you can drive across most countries in a few hours. Not like the USA... You'd spend half a day in EV chargers to get halfway across the USA.

Keep in mind, the UK (for example) is about the size of Michigan. If a Michigander never left the state, they'd probably be an EV candidate. But they'd be bored stiff.

7 hours ago, Harsh Jones said:

This is ridiculous. Most of these pie in the sky mandates have been rolled back around the world. Thailand is 5+ years behind

Since when is the United States “around the world“?

Since when is the United States “around the world“?

When the US gets a cold, the world sneezes.

Edited June 3Jun 3 by impulse

On 6/2/2026 at 6:25 PM, impulse said:

When the US gets a cold, the world sneezes.

You are about 20 years behind.