Chinese electric vehicle manufacturers, including BYD, Hozon Auto, and Great Wall Motor, have made significant progress in penetrating Thailand’s car market. Together, they currently hold an 8% market share and are leading the way in the electric vehicle segment.
- The demand for electric vehicles (EVs) in Thailand is rapidly increasing, with Chinese-owned brands holding close to 80% of the EV market, compared to less than 1% for Japanese brands.
- Chinese EV makers like BYD and Hozon Auto are gaining significant market share in Thailand, challenging the dominance of established Japanese automakers like Toyota and Honda.
- Thailand’s government subsidies and the entry of Chinese EV brands into the country’s auto manufacturing sector are driving the surge in EV sales and production, with EV registrations expected to surpass 150,000 this year.
Government subsidies and increasing EV demand are driving this growth, with EV sales expected to double in 2023. Chinese-owned brands now make up almost 80% of Thailand’s EV market, compared to less than 1% for Japanese brands. Additionally, Chinese EV brands are also entering Thailand’s auto manufacturing sector, with plans to locally produce electric vehicles and batteries.
Thailand’s exclusive distributor of BYD, the world’s largest electric vehicle manufacturer, intends to expand its number of dealerships in Thailand threefold over the next two years.
Thailand’s fast-growing EV market, supported by government subsidies and policies, is attracting significant investments from Chinese auto companies, with BYD outperforming other automakers in the region.
BYD has sold approximately 30,000 units, leading to an expansion of its market share to just under 4%. Currently, it holds the sixth position in the country, surpassing Nissan Motor and Mazda Motor. Furthermore, it plans to commence production by the end of the year at a local factory it is constructing. Government subsidies have contributed to this EV demand. The latest scheme, which starts this year, offers subsidies of up to 100,000 Thai baht ($2,836) per car and will run through 2027.
Thailand is aiming to have Zero Emission Vehicles (ZEVs) make up at least 30% of the total motor vehicle production by 2030. This would mean producing 725,000 cars and 675,000 motorcycles.
On November 1, 2023, the EV Board introduced a new incentive package called EV 3.5. As part of this package, the subsidy for electric vehicles was revised to a range of Baht 50,000 to Baht 100,000 per vehicle.
Increasing EV demand in Thailand could double this year, Krisda Utamote, president of the Electric Vehicle Association of Thailand, predicted in an interview with Bloomberg. He forecast that EV registrations could surpass 150,000, meaning that 20% of all registrations would be for electric cars.
