Thailand's automotive industry and supply chain may continue to feel the strain of conflicts in the Middle East despite peace negotiations, says Omoda & Jaecoo (Thailand) Co, a subsidiary of Chinese state-owned electric vehicle (EV) maker Chery Automobile.
The prospect of Washington and Tehran fully halting hostilities remains uncertain, fuelling concerns over a drawn-out conflict.
Such instability is expected to exacerbate semiconductor scarcity and push global prices higher, said Cedric Cui, president of Omoda & Jaecoo (Thailand).
The war has already disrupted critical resources. Attacks on Qatar's Ras Laffan facility earlier this year knocked out nearly one-third of the world's helium supply, a key input for semiconductor production, according to media reports. The shortage threatens chipmakers that support Thailand's automotive industry.
Although a 14-point memorandum of understanding between the US and Iran was announced on June 17 to pave the way for peace, both sides quickly accused each other of violating the interim ceasefire.
Reports indicated an Iranian projectile struck a cargo vessel in the Strait of Hormuz just days after the agreement.
"Uncertainty in the Strait of Hormuz and the helium issues are major concerns. These will drive up operation costs of car manufacturers," Mr Cui said.
Omoda & Jaecoo already raised prices on some models, though economies of scale have helped shield buyers from the full impact.
Despite the challenges, the company is pressing ahead with new product launches, recently unveiling the Jaecoo 6T REEV, a range-extended EV, with deliveries expected to begin this month.
Country director Bill Zhang said the firm expects to sell around 500 units per month.
Omoda & Jaecoo also plans to expand investment in Thailand's auto parts sector and increase production of new-energy vehicles, notably REEVs. The company produces various types of EVs, including battery EVs, hybrids and plug-in hybrids, which supports the country's energy transition.
Omoda & Jaecoo sells 3,000-3,500 vehicles monthly in Thailand, while Chery-branded cars account for 600-1,000 units.
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