TKT Says EV Import Tariffs Will Boost Domestic Parts, EV Portfolio Still Only 1% of Revenue

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Worapong Phonmuangla, Managing Director of T. Krungthai Industries Public Company Limited, or TKT, told the Stock Vision news team that the government's measure to raise import tariffs on electric vehicles will create an opportunity for domestic plastic parts and mold manufacturers, as carmakers may increase the share of parts they purchase and outsource from local operators. Currently, TKT derives about 1% of its total revenue from plastic parts for electric vehicles, taking on work as a Tier 2 supplier through Tier 1 parts makers that are partners of Chinese EV brands, and it delivers parts to roughly one or two Chinese EV makers. Although the Chinese-brand EV market has potential thanks to the establishment of production bases in Thailand, it still faces intense price competition, while actual EV registrations in the country stand at only about 40,000 to 50,000 units, below the production targets set by carmakers. The company expects total revenue this year to be close to last year's level, in line with the target set at the start of the year, amid a slowdown in the domestic automotive industry. The Federation of Thai Industries has cut its 2026 car production forecast from 1.5 million units to about 1.45 million units, with production for export at about 1 million units, and domestic car sales lowered from an original target of 500,000 units to about 400,000 to 450,000 units. TKT is therefore focused on cost management and improving production efficiency, including negotiating selling price adjustments based on cost structure, or Cost Plus, finding new suppliers and alternative raw materials, controlling Standard Cost, investing in tools to improve machine efficiency and reduce waste, and training to develop employee skills, in order to maintain profitability.

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