Thailand EV Sales Could Double With Homegrown Models Debut

Thailand's electric vehicle sales could double this year as Chinese manufacturers prepare to launch their first locally manufactured models and government incentives totaling US$2.4 billion boost consumer demand.

In an interview with Bangkok post, Krisda Utamote, president of the Electric Vehicle Association of Thailand, predicted that new battery EV registrations would exceed 150,000 by the end of the year.

That will increase the vehicles' share of total passenger car registrations to 20% this year, up from 12% last year and single digits in 2022, he said.

Thailand's demand for EVs is soaring after the government reduced import and excise taxes on imported EVs and provided cash subsidies to buyers in exchange for automakers' commitment to establish local production lines, all as part of a renewed push to maintain the country's long-standing status as a regional auto hub.

The measures, which began in 2022 and have been extended until 2027, have sparked a surge of investment.

Major Chinese automakers such as BYD Co and Great Wall Motor Co are among those establishing local plants, which should boost the country's manufacturing clout while also helping it meet its carbon neutrality target by 2050.

"This year will see the first domestic roll-outs by many manufacturers who signed up for the first incentive scheme and committed to local production," said Krisda, who also stated that the program was accelerating domestic purchases.

Annual EV registrations could even reach 225,000 units by 2025, meeting the National EV Policy Committee's target of new-energy vehicles accounting for 30% of total passenger car usage that year, he said.

However, Thailand's auto industry faces at least one major impediment to continuing its rapid growth. According to an October report from Kasikornbank Pcl's research center, the number of public charging stations may not keep up with EV sales, reducing the cars' appeal to mass-market buyers.