Sales of electric vehicle (EV) in Thailand are expected to hit 50,000 units this year, more than double the roughly 20,000 units managed in 2022, according to a projection by the Thailand Automotive Institute (TAI).
The institute is confident that the numbers will be achieved despite weak purchasing power, high household debt and a stricter auto loan process from financial institutions, as the Bangkok Post reports.
The TAI said that EVs will remain popular due to the government’s incentive package, which is part of the effort to make the country a regional EV hub. Last year, the Thai cabinet approved a package of incentives, including tax cuts and subsidies, to promote EV consumption and production between 2022 and 2023.
“We expect the Thai automotive industry to be healthy this year, especially the EV sector, which will see steady sales,” said TAI president Kriengsak Wongpromrat. He added that as Thailand is viewed as a potential EV market with high spending among buyers, car companies will continue to import new EV models in the second half of this year, notably from China.
He said that Chinese EV makers are expected to increase their market share in the Kingdom as more consumers opt for EVs instead of internal combustion engine (ICE) vehicles. Additionally, the institute expects things to ramp up further when the first locally-assembled BEVs appear in the first quarter of next year.
This is because carmakers receiving EV support funds from the government are required to establish an EV production base in Thailand from 2024, the intent being to have local production offset imported EVs on a one-to-one ratio, meaning that for every imported EV that receives support, one EV must be produced domestically.
During the first half of this year, the country’s Board of Investment (BoI) granted investment promotion benefits to 14 battery EV (BEV) manufacturers with a combined project value of 33.9 billion baht (RM4.48 billion), representing an annual production capacity of 276,640 units.
Kriengsak said that in anticipation of the expected growth, the TAI is cooperating with car companies, academic institutions and EV engineers to train and upskill Thai auto parts makers to accelerate their shift from ICE to electric mobility.
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