Thai auto parts makers pivot to medical devices amid EV shift

The Federation of Thai Industries (FTI) will present a comprehensive proposal to the government this month to strengthen the local medical device business. This strategic initiative seeks to aid auto parts manufacturers in diversifying their operations as the vehicle industry transitions to electric vehicle (EV) technology.

The ongoing shift in the automotive industry presents a significant opportunity for auto parts makers, especially those traditionally focused on internal combustion engines, to pivot their business models toward new and emerging sectors, such as the promising medical device industry.

FTI Vice-Chairman Isares Rattanadilok Na Phuket highlighted that discussions are actively taking place among FTI members to support parts manufacturers interested in transitioning to the medical device sector. This collaborative effort is a strategic plan to assist parts makers who aspire to transform their businesses and enter the medical device industry, making everyone involved feel part of a collective effort.

Under FTI’s innovative unit, Mobility-ONE, a cluster named CFM-ONE is exploring the potential for auto parts producers to shift into the production of medical products. This includes single-use devices, diagnostic test kits, and durable medical items like wheelchairs and hospital beds.

Established last year, CFM-ONE aims to foster the development of Thailand’s automotive industry while helping companies navigate sectoral challenges. According to Isares, this new unit could be pivotal in helping automakers transition toward the medical device industry.

“CFM-ONE will engage with the government to promote the medical device industry more effectively and create popular new products for the country,”

The FTI also advocates for public health agencies to increase their procurement of locally produced medical devices, which currently lack widespread recognition in hospitals. Isares emphasized the challenges in selling medical products to hospitals and wellness businesses that often need to trust products made by local companies.

At present, Thailand imports approximately 90% of its medical devices, with only 10% being produced domestically. Isares underscored the urgent need for Thailand to develop its medical products and enhance technology to support the local medical device industry. This is not just a business opportunity, but a national responsibility to bolster the local medical device industry and enhance Thailand’s self-sufficiency, he urged.

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Previously, CFM-ONE announced plans to collaborate with global car manufacturers to support local auto parts makers in the automotive industry by encouraging a focus on producing parts for EVs. This shift aims to ensure auto parts manufacturers’ continued relevance and success amid the evolving automotive landscape.

This proposal from the FTI marks a crucial step toward diversifying Thailand’s industrial capabilities and enhancing the nation’s self-sufficiency in medical device production. By fostering collaboration and innovation, the FTI aims to position Thailand as a critical player in the global medical device market, ensuring sustainable growth and development for the future.

By leveraging auto parts manufacturers’ existing skills and expertise, this initiative aims to create new economic opportunities and reduce Thailand’s reliance on imported medical devices. The transition to producing medical devices is seen as a strategic move to support the automotive sector’s adaptation to EV technology and bolster the country’s healthcare infrastructure and economy.