Thailand’s EV Industry: A promising sector

As Thailand continues to build toward an Industry 4.0 model of advanced manufacturing, the automotive and related sectors are expected to grow further. Recognising this potential and the benefits it would bring, the Thai government has set highly ambitious targets for EV production and sales nationwide.

Global EV Outlook 2024: Electric car sales remain robust worldwide, with the potential to reach around 17 million units in 2024, accounting for more than one in five cars sold globally. Key regions driving this growth include China, Europe, and the United States. In China, the market share of electric cars could reach up to 45%. Europe is expected to have a 25% market share for electric cars, while over 11% of cars sold in the U.S. could be electric.

Emerging Economies: While electric car sales have been concentrated in major markets, growth is picking up in emerging economies. Countries like Vietnam, where around 15% of all cars sold are electric, and Thailand, with 10%, are showing increased interest in EVs.

Industry 4.0 and EVs: Thailand’s automotive industry is transitioning from traditional internal combustion engines (ICE) to next-generation vehicles. As part of the Thailand 4.0 initiative, the country is embracing advanced manufacturing technologies, including EVs.

Policy measures such as purchase subsidies and incentives for EV and battery manufacturing play a crucial role in driving adoption. In India, the Production Linked Incentives (PLI) Scheme supports domestic EV manufacturing. Similarly, Brazil, Indonesia, Malaysia, and Thailand are witnessing uptake, especially with more affordable models from Chinese brands.

Challenges

Thailand’s EV industry is on an upward trajectory, fuelled by policy support, technological advancements, and a commitment to sustainable mobility. As the world shifts toward cleaner transportation, Thailand is positioning itself as a key player in the global EV landscape.

Thailand faces several challenges in promoting electric vehicle (EV) adoption. The current EV infrastructure in Thailand is insufficient for purely electric vehicles, with charging stations unevenly distributed across the country. Approximately 70% of these stations are concentrated in central areas like Bangkok, Nonthaburi, and Samutprakarn. To encourage Thai motorists to choose EVs over petrol vehicles, it is crucial to improve the charging network, expanding stations beyond Bangkok to cover other regions.

The initial cost of purchasing an electric vehicle remains a significant barrier for consumers, as EVs tend to be more expensive than traditional internal combustion engine (ICE) vehicles. Incentives and subsidies can help offset these costs, making EVs more accessible to a wider audience. Transitioning from conventional vehicles to EVs also requires a change in behaviour and mindset. Some consumers may be hesitant due to concerns about range anxiety, unfamiliarity with EV technology, and perceived inconvenience. Education and awareness campaigns can address these challenges by highlighting the benefits of EVs and dispelling myths.

The limited geographical reach of Thailand’s EV charging network is unappealing to potential market players and investors. A robust charging infrastructure is essential for attracting investments and supporting long-term EV adoption. Expanding charging stations to cover more areas, especially outside major cities, will enhance the overall appeal of EVs. Clear policies and supportive regulations are necessary to create a conducive environment for EV manufacturers, distributors, and consumers. Collaboration between the public and private sectors is crucial to address these challenges and accelerate EV adoption in Thailand.

In summary, Thailand’s journey toward widespread EV adoption involves overcoming these obstacles through strategic planning, investment, and collaborative efforts. By addressing these challenges, Thailand can position itself as a key player in the electric mobility revolution.