The arrival of Chinese electric car manufacturers does indeed offer Thailand an opportunity to step into a new automotive era. However, behind the investments and modern factories lies a critical question: how well can Thai workers and businesses adapt to these changes, and is the government adequately prepared to support those affected? The key issue is when the government will begin managing this industrial transition.
A report by The New York Times highlights this issue through the experience of Thai worker Ms. Netsana Sakulpolpanya, a former employee in the automotive industry. She said union leaders had warned about the impact of electric vehicles, but many workers felt the change was distant and did not anticipate how quickly it would affect their jobs and income. When the government introduced tax reductions and subsidies for EVs and allowed imports over the past two years, even thoughthere were rulesto be followed,including domestic production requirements,clearly regulated,
this grace period caused Thailand's car market to shift rapidly and noticeably.
At the same time, the free trade agreement between China and ASEAN allowed qualifying cars to enter without customs duties.
Within months, several Chinese car brands—including Changan, GAC, Aion, Neta, and Chery—became increasingly visible on Thai roads.
For workers in traditional businesses, the change showed up as fewer orders, lost overtime work, and declining income.
Ms. Netsana said her company started giving employees days off with pay reduced to 75 percent of normal wages before declaring bankruptcy and closing in 2024, causing nearly 900 Thai workers to lose their jobs without severance pay, according to reports.
This story illustrates that job losses in old industries and new job creation are not automatically linked. Even with new factories opening, displaced workers may face age, skill, or access barriers to new employment.
At 49 years old, Ms. Netsana had to take a job at a supermarket earning about 11 U.S. dollars per day, roughly 363 baht (at 33 baht per dollar). She did not apply to work at Chinese car factories because she heard they preferred younger workers.
However, this is her personal experience and information she received, not a confirmation of employment policies across all Chinese factories.
From policymakers' perspective, attracting investment faces intense competitionamong countries,which is fierce.
Mr. Supawut Saicheu, chairman of the National Economic and Social Development Council, said in the report that the changes happened much faster than expected and admitted that past evaluations did not fully consider the impacts, making the negative effects on Thailand more severe than previously estimated.
Another key issue is that the growth of the EV market may not yet be well connected to domestic production. The report states that in the first seven months of 2026, EVs accounted for about one-third of new car sales in Thailand, but roughly two-thirds of these EVs were imports, mostly from China.
Prime Minister Srettha Thavisin, Thailand’s 30th prime minister, explained that during his administration, if Thailand had not invited Chinese carmakers, they might have chosen to invest in Vietnam or Malaysia instead. Meanwhile, Chinese manufacturers are seeking overseas markets to handle excess production capacity and intense price competition within China.
Still, Mr. Srettha acknowledged in hindsight that his government should have closely monitored how many Thai workers the Chinese companies employed and how much they sourced from Thai businesses.
This point is important because Thailand’s benefits from investment depend on the linkage between new factories and the domestic economy.
The New York Times report describes the collaboration between workers and technology at BYD’s factory in Rayong province, where workers assemble colorful wiring harnesses for electric cars while robotic arms weld car bodies.
However, when asked about the proportion of parts coming from China, the response was that there were so many parts it was hard to specify, making it unclear how much value the production adds to Thai businesses...
The report underscores a policy lesson: promoting new industries must go hand-in-hand with developing the workforce and existing parts manufacturers.
At the same time, the government should maintain verifiable data on employment, local procurement, and skills transfer, establish training systems linked to real jobs, and ensure rights and compensation for displaced workers.
Thailand has the opportunity to grow alongside the electric vehicle industry, but the success of this transition reflects on the lives of Thai people—their job opportunities, incomes, and the capacity of local businesses to thrive with new investments.
The question is how Thailand will manage this change to ensure workers who built the traditional industry can advance into the future automotive sector.
An important factor often overlooked is political uncertainty and sudden government changes, making it unclear how policies—including industrial development and the transition from traditional to electric vehicles—will proceed consistently to maximize Thailand’s economic benefits while minimizing negative impacts.
Especially over the next five years, by around 2031, some estimate that if electric vehicles dominate the Thai market, about 300,000 jobs in the conventional automotive sector could disappear within five years.