BANGKOK, May 14 (Reuters) – Ten Thai auto industry groups warned on Thursday that the sector is facing crisis as ‌EV adoption erodes local production, with manufacturers struggling to compete ‌with cheap zero-tariff imports from China and parts makers also losing orders.

The auto and ​auto parts groups, which include more than 1,500 members, said in a letter submitted to the government that the industry could fall off a “cliff” in 2027, when an incentive scheme aimed at encouraging EV ‌production comes to an ⁠end.

They called on the government to urgently overhaul policy and roll out emergency measures to support the industry ⁠before the incentives expire.

• The government should introduce tax reforms to favour locally produced EVs and ensure firms invest and manufacture in Thailand, ​they said.

• ​It should also tie import quotas ​to domestic production and technology ‌transfers.

• Regulators should tighten local content rules and mandate higher Thai material usage.

• Authorities should incentivise the use of locally manufactured parts and integration into global original equipment manufacturer supply chains.

• The Thailand Board of Investment should curb incentives in mature segments and strengthen ‌compliance audits.

• The government should secure fair ​raw material access and prevent dumping.

• ​Regulators should tighten origin rules, ​enforce measurable technology transfers, and require local safety ‌testing.

• Thailand is Southeast Asia’s biggest ​auto production centre ​and an export base for top carmakers like Toyota and Honda.

• Thailand’s EV policy, which also includes tax breaks and price ​subsidies, has attracted ‌more than $4 billion in investments, including from Chinese firms BYD ​and Great Wall Motors.

(Reporting by Chayut Setboonsarng; Writing by ​Orathai Sriring; Editing by David Stanway)