This chapter examines recent developments in the Thai automobile industry. Even though the industry has been liberalized since 2000, with the abolishment of the local content requirement regulations, reduction in import tariffs, and the conclusion of several bilateral free trade agreements, industrial policy continued to play an important role. In the 40 years since the initial industrialization took off, from 1960 to 2000, Thailand has emerged and became the largest production and export hub of Japanese carmakers outside Japan. The trend of the electrification of the automotive industry, clearly a disruptive technological development, has enabled the Thai government to attract investments from several enterprises from automobile-producing countries other than Japan to become an electric vehicle (EV) production hub in Southeast Asia. Thailand’s status as a production base for Japanese car manufacturers is now challenged by the entrance of several Chinese automobile producers, most of whom were attracted by investment incentives. In this chapter, we sketch a scenario in which the electrification of the automotive industry will have far-reaching effects on the industry’s structure. Still, we argue that, led by Japanese manufacturers, the Thai automobile industry will adjust itself timely. The time needed for this adjustment process becomes available through a mixture of industrial policies, responses from Japanese investors and the upgrading of local suppliers. The challenges for the existing supply chain are clear, as electric vehicles require fewer parts while manufacturers tend to adopt modular and flexible platforms. Chinese car manufacturers, on the one hand, use the existing industrial infrastructure for the automotive sector in Thailand. On the other hand, they also bring their own Chinese suppliers to the country. This leads to a broadening of the industrial base in Thailand and implies that the Thai automotive industry becomes less dependent on only Japanese car manufacturing investors.