Business · Trade · 2 hrs ago
Southeast Asia’s EV shift puts local car parts suppliers at risk
The shift to electric vehicles is putting Southeast Asia’s local car parts suppliers at risk.
Smaller manufacturers in Indonesia, Thailand and Malaysia have long supplied parts for petrol- and diesel-powered cars.
As demand for those parts weakens, Chinese automotive companies are often using imported components and established supplier networks instead of local makers.
High barriers to joining EV supply chains make it harder for regional suppliers to find new business.
Analysts say repairs, servicing and hybrid vehicles could help keep some suppliers afloat.
But without stronger government support and better access to Chinese manufacturers, the transition could weaken the region’s established auto parts industry.
Southeast Asia’s electric vehicle boom risks leaving smaller regional car parts suppliers behind.
Chinese automotive companies are favouring imported components and established supplier networks over local part-makers.
Suppliers in Indonesia, Thailand and Malaysia face weaker demand for parts used in petrol and diesel vehicles and barriers to entering EV supply chains.
Analysts say repair and servicing work, as well as hybrid vehicles, could help local suppliers.
The article says stronger government support and better access to Chinese manufacturers may be needed to protect the region’s established supply base.
- Who
- Smaller car parts suppliers in Southeast Asia, including manufacturers in Indonesia, Thailand and Malaysia.
- What
- The shift to electric vehicles risks sidelining local suppliers as Chinese automotive companies favour imports and established supplier networks.
- When
- During Southeast Asia’s current electric vehicle boom.
- Where
- Southeast Asia, including Indonesia, Thailand and Malaysia.
- Why
- Demand for petrol and diesel vehicle parts is weakening, while barriers to entering EV supply chains remain high.
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- Countries named
- Indonesia, Thailand and Malaysia
- Component type losing demand
- Parts for petrol and diesel vehicles
- Potential lifeline
- Repair and servicing work, and hybrid vehicles
- Reported investment impact
- Chinese EV investments have generated minimal business for established local component makers