Schaeffler Group bullish on export outlook

Auto parts manufacturing for oil-fuelled cars and the electric vehicle (EV) industry continues to grow in Asia-Pacific, with Thailand set to become an export hub for car components produced by Germany’s Schaeffler Group.
The market value of auto parts for internal combustion engine (ICE)-based cars and EVs in Asia-Pacific is expected to increase by 3-4% this year, expanding into 2025 in line with economic growth in the region, said Micah Shepard, president of Schaeffler’s vehicle lifetime solution business (Asia-Pacific).
Schaeffler produces rolling element bearings, mechanical components that can reduce friction and support rotational motion.
Subsidiary Schaeffler Thailand recently opened a new warehouse spanning 3,000-6,000 square metres in Chon Buri’s Si Racha district.
The facility supplies key vehicle components to the domestic market as well as export components.
The Thai government is promoting the development of the EV industry while simultaneously supporting manufacturers of ICE-powered vehicles.
The number of car manufacturers here once earned Thailand the moniker “the Detroit of Asia”.
Thailand car manufacturing is dominated by ICE-powered vehicles, with oil-fuelled passenger cars and pickups accounting for more than 85% of total production.
Battery EVs represented just 1.2% of production, according to the Federation of Thai Industries (FTI), citing the car production report for September 2024.
The other 13.8% of output is other types of vehicles, such as hybrid EVs.
Under the country’s 30@30 policy, Thailand expects EVs to represent at least 30% of total auto production by 2030, with 725,000 zero-emission cars, 675,000 electric motorcycles and 34,000 electric buses and trucks.
The FTI predicts more automotive investment projects in Thailand, from both local and foreign companies, to bolster the economy and revive sluggish domestic vehicle sales.
Schaeffler’s latest investment in Chon Buri aims to develop a logistics centre to supply auto parts for a variety of cars.
“This centre has the potential to support global supply chains for ICEs and EVs,” said Jens Schuler, chief executive for vehicle lifetime solutions at Schaeffler.
The company also plans to invest in developing an R&D centre in Thailand in the first quarter of 2025.
Schaeffler typically spends €400 million (14.7 billion baht) a year on supporting its investment projects globally.
“Thailand is a prime location for investment to serve demand from new industries,” said Mr Shepard.