Exploring the Impact on Thailand’s Automotive and Design Industries

With unofficial election results pointing to a Trump comeback as U.S. President, his trade and investment policies could shake the global market. Here’s what we might expect:

• Trade: Potentially imposing a 60% tariff on Chinese goods and 10% on imports from other countries.
• Investment: Incentivizing businesses and investments to return to the U.S. through special tax benefits.
• Environment: Possible withdrawal from the Paris Agreement and a delay in implementing carbon taxes.
• Global Politics: Strong support for Israel.

If Trump regains the presidency, his “America First” policies could significantly impact various sectors of Thailand’s economy. This article focuses on the effects on trade and investment in the automotive industry, one of Thailand’s core sectors.

One of Trump’s key campaign promises that’s raising concerns is a proposed increase in tariffs on all Chinese imports, potentially up to 60%. This move could affect global export economies, including Thailand.

Higher tariffs on Chinese goods could open opportunities for other trading partners to replace Chinese imports. During the previous trade war, imports from Thailand and ASEAN countries to the U.S. grew by 82%, especially in areas where Thailand has strong export potential, like communication equipment and computers.

But what if China redirects its exports to other markets? How would this shift impact Thailand’s industries?

The trade barriers imposed on China by the U.S. create a strong possibility for China to shift its exports to other markets. This could result in Thailand losing market share, especially in industries like communication equipment, computer parts, electrical devices, and automotive components.

In such an uncertain trade environment, how should Thailand prepare?

While replacing Chinese exports presents opportunities for Thai industries, Thailand will still face competition from other countries that may also benefit from these new opportunities.

So, how can we ensure that we remain competitive against other trading partners?

The automotive product design and development process today faces numerous challenges. Aside from producing high-quality parts at competitive prices, the time it takes to develop these products is also crucial to securing a strong position in a market filled with competitors.

Studies show that the biggest delay in production across industries is the “slow discovery of issues by designers and developers.”

In the design and product development process, most designers still rely on physical testing to assess product performance. This process can consume up to 80% of the overall development time. If the test results don’t meet expectations, the process has to restart, causing even more delays.

To speed up the product design and development process and compete effectively, it’s essential to adopt tools that are modern, efficient, and aligned with rapid technological advancements—such as Computer-Aided Engineering (CAE).

CAE technology was initially developed as a tool for analysis and calculations for the National Aeronautics and Space Administration (NASA) and has been continuously used and developed for over half a century in various industries such as automotive, construction, electrical, and electronics. As a result, CAE has become a crucial cross-cutting technology with significant impact.

The strength of CAE lies in its speed. Physical testing, which once took days or even months using traditional methods, can now be reduced to just a few hours. This accelerates innovation and design, allowing designers and developers to explore more possibilities without limitations.

Computer-Aided Engineering has become the industry standard for design, supporting comprehensive analyses, including:

• Structural and Strength Analysis: Studying how structures behave under various forces to ensure products meet quality and safety standards.
• Computational Fluid Dynamics: Simulating fluid flow behavior, which is sometimes invisible to the naked eye.
• Thermal Analysis: Managing or eliminating heat generation in systems or products.
• Rigid Body Dynamics: Studying the motion behavior of mechanisms and joints.

CAE is therefore a vital tool that enables modern design, keeping pace with change and positioning industries to lead in innovation.

If you’re interested in learning more about CAE software for product design and development or seeking advice on how to incorporate this software to improve production efficiency and establish more systematic workflows for optimal business results, click to provide your details at

Source of analysis for this article: Bank of Thailand

Written by:
Nithikit Thanateerarak
Sr. CAD/CAE Consultant