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The Growth of Thailand’s Electric Vehicle Market

07 Sep 2022 | Thailand

As more Southeast Asian countries push for sustainable transportation, electric vehicles are gathering speed in passenger car markets. In Thailand, where the EV market share is expected to reach 4% this year, efforts to reduce the barriers to entry through the importation and manufacturing of electric vehicles are picking up. The country aims to be a regional hub of electric vehicle production in Asia by 2030.

The growth of the EV market share in Thailand in the last decade has been slow but continually rising. In the last few years, the government has issued policy reforms with the goal of enabling the development of Thailand’s electric vehicle market.

In a recent report by YCP Solidiance titled Electric Vehicle Development and Deployment in Thailand: Moving Towards an Acceleration of EV Adoption, potential EV buyers cite the lack of infrastructure, specifically charging stations, as a roadblock in choosing to purchase EVs over petrol vehicles.

What is in store for Thailand’s electric vehicle market, and how can the country achieve its targets for the usage and production of EVs? We look at the current trends in Thailand’s electric vehicle market and what the country can look forward to for 2030.

Tax Cuts and Subsidies for Thailand’s EV Roadmap

EV in Thailand

In an effort to support the electric vehicle market in Thailand, the government announced that they will be reducing tariffs for imported EVs until 2023. Import tariffs on EVs are currently reduced from zero to 40%, depending on engine size. The Thai government also created a package with tax cuts and incentives geared at the purchase and usage of EVs through 2023. This also includes the cuts on excise tax and import duties for EVs.

The government is not only eyeing vehicle imports to increase the EV market share in Thailand. As they target the growth of the sector through production, the Thai government have also issued policy reforms to support the local industry. EV manufacturers in Thailand are benefiting from the exemption of import duties on electrical parts through 2025.

Currently, EV battery production is also playing a key role in the growth of the electric vehicle market in Thailand. While the government develops key infrastructure such as charging stations to promote the use of EVs in the country, the production of EV batteries is also increasing alongside it, with key players enter the Thai EV market. The need for EV batteries continues to increase globally, and as part of Thailand’s EV roadmap, production for batteries will be important as the country aims to become a global hub of EV manufacturing.

Looking Ahead

As the growth of Thailand’s electric vehicle market continues to accelerate, the local industry can now focus on the manufacturing and production side to further speed up its development. Local manufacturers, like Thai Rung Union Car Public Company Limited, have released electric vehicle models like a new electric tuk-tuk, a tricycle commonly used for commuting in Thailand. Another local player, Energy Absolute Public Co. Ltd., has also ramped up their production with their new assembly plant for electric buses.

Thailand also remains attractive for global EV players that plan to invest in the local industry for manufacturing. With favorable economic conditions and proactive policies that support competitive pricing, the country invites key players to explore investments in the country. The United States-based company Evlomo, known for their EV charging stations that have popped up in the country, is setting up its EV battery plant in Thailand worth 1.2 billion USD.

The country sets its sights on 2030, and the current outlook for the electric vehicle market in Thailand looks bright. EV production and export numbers enjoying a continuous rise. The local industry can anticipate comfortable growth as more investments and expansions take off.

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