Thailand emerges as Southeast Asia’s leading EV market
Thailand is a major hub for the production and assembly of internal combustion engine (ICE) automobiles in Southeast Asia. The manufacturing sector is the main contributor to the country's GDP; therefore, it is crucial for Thailand to maintain its status in the region. While the EV market in the area is still relatively small, Thailand already dominated the Southeast Asian EV market in terms of sales share in 2022, making it the most significant market for EV automakers in that region. The registration of EVs in Thailand has steadily increased from 2018 to 2021, and it is predicted that by 2025, the value of the EV market in Thailand will almost double.Who will dominate the domestic market?
BEVs produce zero emissions, making them an attractive alternative to traditional gasoline and diesel vehicles. In contrast to BEVs, hybrid electric vehicles (HEVs) still have internal combustion engines in addition to their electric motors. Currently, the number of HEVs on Thailand's streets is much higher than BEVs, as consumers are still concerned about insufficient charging stations across the country. However, the sales of BEVs in Thailand in 2022 had a much higher growth, with more than five times more growth compared to HEVs.In order to successfully transition from a country primarily reliant on ICE vehicles to one that primarily uses BEVs, it is important to develop a robust charging infrastructure. In 2022, Chinese original equipment manufacturers like Great Wall Motor (GWM) and BYD released new, moderately priced EV models, providing BEVs at highly competitive prices compared to premium models already available on the market. Although Tesla’s BEVs are top-sellers globally, GWM’s Ora Good Cat was the leading model in Thailand's BEV market. However, Tesla is set to change the market by starting delivery of the Model 3 and Model Y for less than two million Thai baht in Thailand in early 2023. Overall, the EV market in Thailand has the potential to grow significantly in the coming years, driven by increasing fuel costs, government incentives, and efforts to reduce air pollution.
