ILO report highlights Thai automotive industry’s need for evolution

Thailand’s automotive sector needs to evolve by integrating new skills and adopting responsible business practices.

Key takeaways

  • A recent report done by the ILO shows the need for the automotive industry evolution in Thailand driven by new skills requirements.
  • The study is titled “Navigating transformational changes and transitions: The skills development and employment landscape in Thailand’s automotive manufacturing sector,” 
  • The report also points to the essential role of continuous learning and adaptability in supporting a more digital and automated manufacturing environment

A new study done by the International Labour Organization (ILO) shows the urgent need for the automotive industry in Thailand to adapt to the evolving employment landscape.

The report, titled “Navigating transformational changes and transitions: The skills development and employment landscape in Thailand’s automotive manufacturing sector,” reveals a pronounced gap between current workforce skills and the demands of an industry increasingly focused on sustainability and technology.

As the ASEAN region’s prospective hub for electric vehicle manufacturing, Thailand must address the growing demand for digital skills and expertise in green technologies. Key areas such as battery production and vehicle automation software are highlighted as critical for the industry’s future competitiveness.

The ILO report highlights the significance of responsible business conduct, advocating for its integration into everyday operations and training programs. This approach ensures that all employees, including the 10 percent of the workforce comprising migrant workers, understand and implement these practices, thereby preventing disparities in rights protection and access to decent work.

How new skills requirements can help the Thai automotive industry to evolve?

Thailand’s automotive industry faces a transformative era marked by the rise of electric vehicles (EVs) and sustainable practices. The evolution of this sector hinges on two pivotal factors: the development of new skills and the adoption of responsible business practices.

  • 🛠️ Skills Development and Responsible Business Practices The ILO report emphasizes the need for the Thai automotive industry to prioritize skills development and adopt responsible business practices. This includes investing in training programs for workers, promoting gender equality in the workforce, and ensuring safe and healthy working conditions.
  • 📈 Adapting to Transformational Changes The report also highlights the importance of the industry adapting to transformational changes, such as the rise of electric vehicles and automation. This will require investments in new technologies and upskilling the workforce.
  • 🌎 Global Competitiveness The report stresses the need for the Thai automotive industry to remain competitive in the global market. This can be achieved by improving productivity, innovation, and sustainability.

The shift towards EVs and advanced automotive technologies demands a workforce adept in digital literacy, software programming, and the intricacies of battery technology. To remain competitive, Thailand must cultivate a talent pool that can navigate the complexities of AI-driven automation and the Internet of Things (IoT), which are becoming integral to modern vehicle manufacturing and maintenance.

Training programs need to be restructured to focus on these areas, with an emphasis on practical, hands-on experience. Partnerships between educational institutions and industry leaders can bridge the gap, ensuring that the curriculum is aligned with real-world applications. Moreover, fostering a culture of continuous learning and upskilling will enable current employees to adapt to new roles and challenges, ensuring that the workforce remains agile and forward-thinking.

In conclusion, as Thailand’s automotive industry navigates the road to 2024, the integration of new skills and responsible business practices will be the driving force behind its evolution. By embracing these changes, the industry can secure its position as a leader in the global automotive market, setting a benchmark for innovation and sustainability. 

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