Major German Auto Parts Deal Driving Thailand Toward a Global Manufacturing Hub

Thailand is making significant strides in the global automotive industry, thanks to a major collaboration between the Thailand Board of Investment (BOI) and ZF, the world’s fifth-largest auto parts supplier from Germany. At the “ZF Thailand Supplier Day 2025,” more than 200 Thai suppliers were connected to ZF’s global supply chain, with the goal of increasing local procurement tenfold to 18 billion baht per year within five years.

ZF, a leading producer of transmissions and chassis systems for European and Asian automakers, has announced plans to elevate Thailand as its main production base in the region. The company is bringing Tier 2 and Tier 3 Thai suppliers up to international standards, building on nearly three decades of investment and five factories in Rayong and Chonburi. Over 430 representatives from 200 companies joined the event, engaging in direct business talks with ZF’s procurement team, covering eight key parts categories—from steel and casting to chemicals—helping position Thailand as a strategic manufacturing center for global exports.

This partnership demonstrates Thailand’s commitment to advancing its industrial capabilities to meet international standards. It also aligns with ZF’s strategy to expand its Asia-Pacific production base, attract investors, and create high-quality jobs as the region’s economy continues to grow. 

For more information : Thailand Board of Investment
Link : https://www.boi.go.th  


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