Sri Lankan automotive representatives visit Thai EV hub
The Morning: The Sri Lanka Export Development Board (EDB), in collaboration with the Sri Lanka Embassy in Thailand, the Sri Lanka Automobile Component Manufacturers Association (SLACMA), and the Thai-Sri Lanka Chamber of Commerce, organised an exposure tour for representatives from nine Sri Lankan automotive sector companies recently.
Sri Lanka had finalised on its free trade agreement (FTA) with Thailand during this year, after six years of having commenced talks with the South East Asian nation.
Thailand, an EV manufacturing giant in the region garnered $ 18.6 billion in foreign direct investments in 2023, with the majority of the investments being made in electric vehicles (EVs), and Bio-Circular-Green (eco-friendly high-value) products and services.
“The main objective of the programme was to enhance participants’ knowledge of the automotive components sector while providing exposure to emerging market trends and potential business opportunities,” the statement by the EDB said.
The statement further detailed that the delegation toured key automotive industry sites, including the SAIC Motor-MG car manufacturing plant, which provided first-hand insights into vehicle assembly technologies, including electric, hybrid, and conventional vehicles. Participants observed advanced machinery and assembly lines with an annual production capacity exceeding 40,000 units.
“At the Thai Smile Group, the delegation studied the production of electric buses and electric boats, including EV transportation control systems. The company operates over 2,500 buses in Bangkok and manages a fleet of EV boats they manufacture.”
“Delegation studied the monitoring system of EV buses using AI technology and possibilities of introducing a similar system to Sri Lanka.”
Furthermore, the team also visited the Thai government-owned Thailand Automotive Institute, where they observed automotive component testing methods. “The institute expressed its willingness to provide technical support to assist in developing Sri Lanka’s automotive industry,” the statement said.
The delegation also explored Worachak Market and Poonsup Market, two key after-sales auto parts markets in Thailand to study product quality standards, pricing, and potential entry points into the value chain.
Experts in Sri Lanka have long expressed Sri Lanka’s mining industry’s potential to produce high-quality graphite to potentially leverage the resource to integrate into the ASEAN value chains of car and electronics manufacturing.
OSL take:
The ongoing economic activities and Sri Lanka’s target of becoming a hub in the South Asian region have opened up a host of business/investment opportunities. The automotive industry is one such industry that is also on an expansion path with great growth and business potential. With the Sri Lankan government looking at lifting the import restrictions on vehicles and motor vehicle parts in several stages, the country’s automotive industry is gearing for expansion. The import restrictions that have been in place for several years have resulted in the increase in the demand for vehicle and spare parts imports. Also, the country’s overall commitment to achieve sustainable development goals with focus on clean energy sources, there’s an increase in demand for EVs in Sri Lanka. The many trade agreements and trade concessions enjoyed by Sri Lanka with many foreign countries will also help the expansion of Sri Lanka’s automotive industry. It is in such a backdrop that Sri Lankan automotive industrialists have visited Thailand to explore opportunities to develop collaborations with EV businesses in Thailand. All these actions are indicative of the overall expansion in Sri Lanka’s automotive industry, especially in the EV sector, and the increasing business/investment opportunities in the sector as a result. Given the increasing business potential in Sri Lanka’s EV sector, foreign businesses/investors could confidently explore the opportunities while also looking at forming partnerships or joint ventures with local businesses in the automotive industry.
| Article Code : | VBS/AT/20241218/Z_6 |