Banking on gloomy automotive sales in Thailand, Chinese automakers seized the opportunity to double down their presence by positioning their cars as pocket-friendly. Brands that have market presence in Thailand include MG Motors, Great Wall Motors, BYD, Geely, Changan, Neta and Xpeng. Changan has also doubled down its footprint in the country.

However, Changan debuted its electric vehicle (EV) named AVATR on 17 September 2024 in Thailand, Xinhua learnt. The AVATR 11, an SUV coupe that marks Changan’s fourth model introduction in Thailand, following the launches of the Deepal L07 and S07 last year and the Lumin L earlier this year.

“AVATR is committed to leading in the development of EVs, meeting current needs, and moving toward a future of smart automotive solutions connected to daily life,” said Shen Xinghua, Managing Director of Changan Auto Southeast Asia.

Together with its major partners, China’s leading battery manufacturer CATL and technology giant Huawei, Changan has developed cutting-edge automotive innovations, signifying a new era of intelligent driving where technology and convenience are seamlessly integrated, Shen told the launch event.

In his opening speech, Thai Deputy Prime Minister and Minister of Energy Pirapan Salirathavibhaga highlighted the importance of investments from Chinese carmakers in stimulating the economy and aiding the development of Thailand’s industrial sector. Last year, Changan announced an investment of THB 8.86 billion ($265 million) to construct its first overseas EV production plant in Thailand, which is scheduled to start operation in 2025 with an initial capacity of 100,000 units per year.

Thailand has long been a regional automotive manufacturing and export hub. With the government’s investment promotion efforts, the nation aims to convert 30% of its annual auto production into EVs by 2030.

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Source: Reuters

Samsung Display’s new facility for the manufacture of organic light-emitting diode (OLED) displays will be located in Yen Phong industrial park in Bac Ninh province east of Hanoi and close to an existing electronics plant, the government said in a statement released after the meeting between Prime Minister Pham Minh Chinh and Choi Joo Ho, the General Director of Samsung group in Vietnam.

Samsung Display is a unit of Samsung Electronics, the flagship of the Samsung group. Bac Ninh authorities and Samsung Display also signed on Sunday a memorandum of understanding of the OLED project, local media reported, adding the investment would raise the group’s total investment in Bac Ninh to US$8.3 billion from the current $6.5 billion.

Vietnam has over the last decade emerged as one of the most attractive production hubs for electronics companies. According to Choi, the Samsung group has established six manufacturing plants, one research and development centre, and one sales entity in Vietnam, with a cumulative investment of US$22.4 billion.

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The report, titled “Navigating Transformational Changes and Transitions: The Skills Development and Employment Landscape in Thailand’s Automotive Manufacturing Sector,” highlights the need to bridge the gap between current skills and emerging demands. Thailand’s pivot towards becoming a central hub for electric vehicle manufacturing in ASEAN is driving this demand.

Key insights include the growing need for digital skills and expertise in green technologies, particularly in battery production and vehicle automation software. Ongoing skills development is essential to support a more digital and automated manufacturing environment. Existing training and education programs are insufficient to meet these demands, the report reveals.

To bridge this gap, it is necessary to enhance technical skills and foster a culture of continuous learning and adaptability, crucial for maintaining global competitiveness. Xiaoyan Qian, Director of the ILO Decent Work Technical Support Team, emphasized that reskilling and upskilling opportunities are critical for supporting just transitions in a greener economy.

The study also highlights the importance of integrating responsible business conduct into operations and training programs, ensuring all employees, including migrant workers, understand and implement these practices. Demographic shifts indicate that older workers need additional support to adapt to the advancing technological environment.

Gizem Karsli, Project Manager of the Skills Development and Responsible Business Conduct for Transition initiative, funded by the Government of Japan, stressed that responsible business conduct is imperative as the industry moves towards more sustainable practices. This approach not only mitigates risks but also attracts investment and partnership opportunities.

Tailored training programs that cater to different learning paces and styles are important for ensuring all employees can contribute effectively. Thailand’s automotive manufacturing sector, the country’s second-largest export sector, accounted for 14% of total exports in the first nine months of 2023, valued at approximately US$27.7b (THB 1.02 trillion). Thailand is the largest automotive producer and exporter in ASEAN and the eleventh-largest globally, producing over 2 million units annually.

The Biggest Catalyst

This comes after Chinese automakers seized the opportunity to double down their presence by positioning their cars as pocket-friendly. They started rolling out electric vehicles (EVs) assembled in Thailand in the local market in compliance with the government’s EV3.0 policy, which aims to balance locally produced vehicles with exports. Thansettakij, a Thai-language media arm of the Nation Group, reported MG4 Electric cars have been assembled at the SAIC Motor-CP factory in Chonburi since April with slight adjustments. China’s Hozon Motors are also assembling their NETA V-11 in Thailand.

If this is not damaging enough, Suzuki and Subaru have announced plans to cease manufacturing in Thailand, causing significant worries for Thai auto parts makers. The global push for carbon neutrality and the increasing adoption of electric vehicles (EV) led to Suzuki reassessing its global production efficiency, the company said. 

Sluggish auto sales were attributed as the reason behind both brands’ pulling out manufacturing facilities. Additionally, reports of consumers’ preferring EVs to Internal Combustion Engine (ICE) cars are putting more pressure on the latter’s position in the country.

Comparisons have been made between EVs and ICEs in terms of cost-effectiveness and convenience. It turns out that EVs proved more worthwhile given the country’s ramping up charging station across the country, after sales and service, along with offsetting petrol costs.

For Subaru, Tan Chong International Limited (TCIL) disclosed the reason as a “proactive business transformation” to HK Stock Exchange, the Subaru distributor, according to reports, has been experiencing continuously declining sales in Thailand which may have led to the plant closure. Moreover, reports also say Tan Chong Motor Holdings Bhd is apparently in a tight financial situation after posting four consecutive years of net losses.

Currently, steel and metal industries are hit hardest in Thailand as production costs remain high and cheap Chinese goods flow into the market. Thailand had 561 factories shutting down this year, primarily in the steel and metal industries. The Federation of Thai Industries (FTI) warns that if production costs, including energy, transportation, and interest rates, remain high, more closures are likely. 

However, despite transitioning to Electric Vehicles, Thailand auto parts businesses can be resilient with a little push from the government to diversify — with auto parts making to medical devices.

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The automotive industry has undergone an ardent transition into electrification, with electric vehicles (EVs) arising as the prospect of transportation. As countries around the globe are striving to diminish carbon footprints and fight climate change, ASEAN is spearheading the transition to emerge as an innovation hub for Electric vehicle battery technology.

Revving Up Insights Into The ASEAN Automotive Industry

The ASEAN automotive market witnessed significant growth, escalated by rising disposable incomes, modernisation, and an amplified middle-class population. The ownership rates of vehicles have been increased in the ASEAN region, ushered by augmenting consumer requirements for versatility and economic progress.

Alongside this progression, issues pertaining to environmental conservation and air pollution have gained prominence, encouraging governments in ASEAN to look for cleaner and more sustainable transportation substitutes. Electric vehicles are a feasible solution to tackle the ecological troubles of obsolete internal combustion engine automobiles.

With emission-free tailpipes and moderate cost of operation, EVs are a carbon-neutral alternative to consumers and governments looking to diminish their carbon emissions. The adoption of electric vehicles is picking up speed in ASEAN, owing to an array of factors:

Government Initiatives

The ASEAN governments are administering numerous policies and subsidies to rev up the adoption of EVs. From tax rebates and subsidies to investments in the allocation of charging units, these standards are focused to induce a suitable environment for EV growth. For instance, economies like Thailand and Singapore have launched tax rebates for electric vehicle consumers, while Malaysia has started investing in the development of charging infrastructure.

Strengthening Consumer Awareness

As consciousness regarding climate change and air pollution surges, ASEAN consumers are more ecologically mindful. This switch in mindset accelerates the demand for cleaner transportation alternatives like EVs. Consumers consider factors like environmental influence and fuel efficacy while making purchasing decisions, which soars the demand for EVs.

Blue Energy’s lithium-ion batteries were launched for use in Honda’s STEP WGN SPADA, adopted for hybrid and EVs. This amplifies the competition in the market while surging the sales of EV batteries.

Investment And Partnerships

The local governments, coupled with international shareholders, invest in research and development to advance the EV battery landscape. Partnerships between automotive manufacturers, battery producers, and technology providers surge innovation and curb production costs. For instance, partnerships between local governments and MNCs support the setup of battery manufacturing units and innovation centers in ASEAN countries.

Infrastructure Development

The formation of charging facilities is cardinal to the extensive adoption of EVs. Governments and private ventures in ASEAN are making efforts to establish a strong network of charging stations and elevate the EV ownership experience. Schemes like public-private collaboration and subsidies for charging unit investments are launched to proliferate the adoption of charging stations in urban and rural areas.

Read more here at page 50

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Reuters noted BYD opened its first factory in Southeast Asia in Thailand this week. The US$490 million factory will have an annual manufacturing capacity of 150,000 vehicles and employ 10,000 workers.

Rever Automotive, which has over 100 showrooms in Thailand, launched the sale of BYD vehicles in 2022 and BYD soon became the country’s top-selling EV brand.

“We are thrilled to deepen our partnership to accelerate the adoption of electric vehicles and contribute to Thailand’s transition towards a more sustainable future,” said Liu Xueliang, BYD’s Asia-Pacific Auto Sales General Manager.

Thailand is a regional auto assembly and export hub, and has long been dominated by Japanese car makers such as Toyota Motor, and Honda Motor Co and Isuzu Motors. In the first quarter of 2024, BYD commanded a 46% share of Thailand’s EV segment and is the third-largest player in passenger cars, according to research firm Counterpoint.

The acquisition comes as Rever faces a government investigation over steep discounts which have left some past customers feeling they overpaid for their cars.

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For example, Chery, Neta, Build Your Dreams (BYD), Great Wall Motor (GWM), and newcomer GAC have attracted domestic consumers with affordable prices for pure EVs or Battery Electric Vehicles (BEV). Suzuki , a major automotive manufacturer from Japan, actually welcomes the competition. This is in spite of its earthshaking announcement of its plan to cease assembling cars in Thailand, one of its major markets.

“We are very open and very happy with the various competitions that exist. This means all competitions will enliven the automotive industry in Indonesia, consumers will have many choices and we are happy to undergo the competition,” Harold Donnel, 4W Marketing Director of PT Suzuki Indomobil Sales (SIS), told Kompas.com in South Jakarta.

Suzuki to date does not have EVs, yet remains confident in selling its vehicle product line, some of which are equipped with mild hybrid technology. As its current focus is on presenting vehicles that fit into the public’s purchasing power segment.

“Suzuki is still confident of offering good value to consumers, and this has been proven in the last few months, even though market conditions have dropped somewhat. Suzuki can still maintain its capabilities and sales volume throughout 2024,” Harold added.

Suzuki vehicles with mild hybrid technology or Smart Hybrid Vehicle by Suzuki (SHVS) currently comprises the Ertiga Hybrid, Grand Vitara Hybrid, and XL7 Hybrid. SHVS technology is equipped with an Integrated Starter Generator (ISG) component and a Lithium-ion Battery with an acceleration assist function to lighten the load on the engine when accelerating.

In short, regenerative braking utilises the moment of deceleration to regenerate electrical power which will be stored in the battery, as well as auto engine start-stop which will stop the combustion process in the engine when it is not needed during the trip.

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The country’s automotive sales is expected to continue dipping this year. Earlier this year, the federation set the production target of 1.9 million cars, a year-on-year rise of 3.15%, of which 1.15 million will be for export and 750,000 for domestic sales. Last month, total car manufacturing decreased by 11% to 104,667 units, especially in the pickup segment, which plunged 45.9%, while the passenger car segment fell by 5%.

Surapong Paisitpatanapong, Vice-Chairman of the FTI and spokesman for its Automotive Industry Club attributed the fall to a weak economy and banks’ tightening of car loan criteria to avoid non-performing loans. During January-April, car production dove by 17% year-on-year to 518,790 units, and auto sales and exports fell by 23.9% and 3.6% year-on-year to 210,494 units and 340,685 units, respectively.

In March 2024, the Federation of Thai Industries (FTI)’s Automotive Industry Club’s spokesperson, Surapong Paisitpattanapong disclosed Thailand manufactured 142,102 cars in January, down 12.46% year on year. Production of pickup trucks for domestic sales contracted 50.89% year on year, while that of passenger vehicles for domestic sales went down 14.68% year on year, he added.

Automotive sales in January were recorded at 54,814 units, down 16.42% year on year. Sales of pickup trucks, usually the top seller, totalled only 14,864 units sold, down 43.47% year on year. Meanwhile, the sales of PPV (pickup passenger vehicle) also contracted 43.86% year on year due to the lack of new models released, while its market shares were also partly taken away by affordable SUVs.

“Buyers are facing stricter loan criteria as financial institutes are using the measure to ward off risks from rising household debts,” said Surapong.

Other factors affecting automotive sales include several months’ delay of budget disbursement under the budget bill for fiscal 2024, which has resulted in delayed investment, decreased spending, and a slowdown in economic expansion since the last quarter of 2023. Exports of Thai-made vehicles contracted slightly in January to 86,716 units, down 0.08% year on year. The main reason was the lack of space on cargo ships heading to Asia, Africa and North America, Surapong explained.

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Chery is the 8th EV maker from China to be approved following BYD, MG, Great Wall Motor, Changan Automobile, GAC Aion, NETA and Foton, Narit Therdsteerasukdi, BOI Secretary-General, said on 22 April 2024. Chery exported 1.8 million units last year, and aims to use Thailand as a production base to meet the domestic demand for right-hand drive EVs, as well as export the vehices to ASEAN, Australia and the Middle East.

In the first phase, Chery will establish a factory in Rayong province before the end of 2025 to produce both battery EV (BEV) and hybrid EV (HEV) vehicles at a rate of 50,000 units per year, he said. In the second phase, the production capacity will be expanded to 80,000 units per year by 2028. Chery did not unveil the total investment value.

Narit added that Chery’s EV will be marketed in Thailand under the names Omoda and Jaecoo, the company’s sub brands for foreign markets. Chery will also import the Omoda C5, the company’s first 100% SUV EV model to spearhead the Thai market around June this year at its brand-new 39 showrooms countrywide. More models of off-road EVs will follow, including the Jaecoo 6, 7, and 8, the latter two plug-in hybrid EVs.

Narit said the BOI has so far approved 26 investment projects related to manufacturing and assembly of electric vehicles from 19 companies, with total investment value of over THB 80 billion.

“The BOI is committed to the government’s policy of making Thailand a manufacturing hub of EVs in the region under the 30@30 target, with zero-emission vehicles making up 30% of total automotive production by the year 2030,” he said.

The 30@30 target translates into 725,000 electric cars and 675,000 electric motorcycles per year.

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H.E. Mr Srettha Thavisin, Prime Minister and Minister of Finance, along with the Ministry of Industry and the Thailand Board of Investment (BOI) participated in the grand opening ceremony to witness this new milestone of Delta’s 35-year journey in Thailand. Delta management from headquarters along with key industry partners and media also attended the grand opening and explored the advanced production lines.

The Prime Minister delivered a special address at the event, expressing the government’s delight at the opening of the new factory and its full support for Delta Electronics Thailand as a leading electronics manufacturer and exporter. The company is ready to support Thailand’s policies and has announced investments to help promote the Prime Minister’s vision to make Thailand a Future Mobility Hub and a Digital Economy Hub.

Mr. Victor Cheng, Delta Thailand CEO, said, “Today is a milestone in Delta’s 35 years of development in Thailand. Since 2010, we have produced EV power electronic products in Thailand. Our new Delta Plant 8 aims to meet growing demand for our EV products and our new R&D center will develop automotive power electronics locally for the first time. We believe our significant investments will greatly benefit the industry, economy and environment of Thailand and our Southeast Asia region.”

Victor Cheng, CEO of Delta Thailand gave a speech on the grand opening of Delta’s new plant and RD center.

Delta’s EV products range from power management products, including onboard chargers and DC/DC converters, and powertrain products, including traction inverters and traction motors, to thermal management solutions and passive components. Delta’s global customers include top automotive manufacturers from Europe, the USA and Japan.

Since 2010, Delta Thailand has produced EV power electronics products for global customers at Delta Plant 1 with a floor space of 25,000 square meters. The new factory and R&D center with 30,400 square meters of floor space aim to increase production capacity for the rapidly growing EV business.

Delta’s advanced and efficient automotive production includes all processes from raw materials receiving and storage to sub-processing, SMT processing, PWBA processing, assembly and burn-in with final testing before shipment of finished goods. The investment of almost THB 3 billion for the facilities also showcases Delta’s energy-efficient building automation solutions and smart manufacturing solutions to increase productivity and quality on production lines.

Celebrating 35 years of development, Delta Thailand is the only Thailand company listed on the Dow Jones Sustainability Indices’ World Index in the “Electronic Equipment, Instruments & Components” category from 2022 to 2023 and has received Supplier Engagement Leader 2022 recognition by CDP for supply chain sustainability. 

Delta Thailand is now entering a new phase of growth expanding its R&D, manufacturing and business footprint in local markets while supporting the development in the Thailand S-curve focus industries of Next-Gen Automotive and Smart Electronics, establishing a solid foundation for expansion in the Southeast Asia region.

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Introduction

Wheel hub powers better steering, which has become a must-have for automotive. The industry witnessed a continuous research and innovation since the late 19^th century in automotive. It is one of the most dynamic fields, accounting for at least one in ten jobs in industrialised countries. 

The industry integrates advanced technologies in vehicles to reduce emissions and ensure customers’ safety. However, in a world where material fabrication and metal heat treatment are outsourced, engineers need to be sure materials are properly processed before use.

The Wheel Hub serves as the glue between the wheel and axle. Wheels are attached with studs to the hub assembly. The hub assembly fits on the axle, connecting the wheel assembly to the rest of the car; bridging the wheel and the entire vehicle. 

If one part fails; it creates a ripple effect. A hub is not a single piece of hardware. Instead, it needs a handful of other parts to do its job.

It is mounted with bearings; cylindrical pieces packed with grease that reduces friction during wheel spin. The Wheel Hub bearing is used to increase fuel efficiency, providing smooth and safe ride for passengers with Anti-lock Braking Systems (ABS). 

This research is related to the design of the workholding device for manufacturing the Wheel Hub section that is too long. The design uses the collet mechanism, improvements include adding a pneumatic cylinder for up and down mechanism, for top clamping of the output loader on the top plate that helps hold the component firmly for operations.

The operator ensures proper alignment of the forged component placed and reduces the rate of scrap from misalignment after manufacturing. This workholding provides good working area for the operator in component manufacturing.

Methodology

The idea was to develop a workholding device for manufacturing Wheel Hub part, which can be manufactured to the exact dimensions of the drawing using the GD&T tools.

A standard operating procedure was adopted till the final manufacturing stage. All operations were carried out on CNC and VMC machine, in case of any burs, auto-deburring was carried out at specific speed.

This workholding device is manufactured for a specific machine. The design of this fixture is drafted by keeping all machining considerations, movements and factors. The final working of this workholding was evaluated and specific planning for mass production of four components in a single run was also studied.

Read more here at page 32

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