Auto workers in Thailand are anxious about job security, as the shift toward Chinese manufacturers may not guarantee employment opportunities for locals.

Concerns have been raised that Chinese EV plants may rely more on automation and prioritize hiring from China and Vietnam over local Thai workers.

Experts predict that the influx of Chinese EV manufacturers could reshape Thailand's industrial landscape, potentially without a precedent for local labor standards.

In response to the changing market dynamics, the Thai government is pushing for more local production of hybrids and electric pickup trucks, with Honda beginning EV production in Thailand in December 2023.

Chinese manufacturers are known for their historical intolerance towards labor unions, which poses a threat to the improved working conditions and wages that workers in Thailand's auto sector have enjoyed over the past decade.

While electric vehicle sales, primarily from Chinese brands, increased by 11% in 2024, total passenger car sales in Thailand dropped by 23% due to rising household debt and stricter auto loan regulations.

Japanese car manufacturers in Thailand are facing significant challenges, as many are reducing operations or shutting down due to increased competition from Chinese electric vehicles (EVs).

The Thai government has set an ambitious goal for 30% of all cars produced to be electric by 2030, viewing Chinese investment as crucial for the future of its auto industry, which employs 800,000 people and contributes 10% to the nation's GDP.

Chinese EV manufacturer BYD has already established a factory in Thailand, expected to create around 10,000 jobs and produce 150,000 vehicles annually, further intensifying market competition.

Local suppliers are struggling to compete with Chinese manufacturers, leading to stalled negotiations and prompting calls for the Thai government to protect local industries by mandating the use of locally sourced parts in EV production.

Critics argue that the Thai government favors Chinese manufacturers in its policies, making it increasingly difficult for local suppliers to thrive.

There are growing demands for the Thai government to implement protective measures for local workers and ensure that a higher percentage of EVs are made with locally sourced parts.