The National Economic and Social Development Council (NESDC) released a report on electric vehicle (EV) investment in Thailand, emphasizing the robust investment promotion in 2024 following the EV 3.0 measures.
These measures mandate that companies importing EVs for sale in Thailand must commence production this year.
Key Points
- The electric vehicle (EV) industry in Thailand experienced a significant surge in new registrations in 2023, driven by government incentives and policies such as EV 3.0 and EV 3.5.
- The National Economic and Social Development Council (NESDC) predicts that private sector investment will be a key driver of Thailand’s economy in 2024, with a notable increase in investment promotion applications through the Board of Investment (BOI).
- The NESDC emphasizes the importance of accelerating approved investment projects and promoting business sector recovery through streamlined approvals and fast-tracking of factory operations to boost production capacity, employment, and new investments.
EV Registration Trends in 2023
In 2023, the number of new registrations for electric vehicles (EVs) in Thailand saw a significant increase, reaching 76,538, marking a 695.9% surge compared to 2022. This surge resulted in the proportion of new EV registrations to total vehicle registrations reaching 11.6%, a substantial increase from 1.5% in 2022.
The report also highlighted a decrease in new registrations for vehicles using traditional fuel, which stood at 481,609, showing an 11.3% decrease from 2022.
Success of Government Incentives and EV Brands
The report attributed the significant increase in new EV registrations to the success of government incentives, particularly under the EV 3.0 and EV 3.5 policies. The top EV brands for new registrations in 2023 were BYD (China), Neta (China), MG (China), Tesla (USA), and GWM (ORA) (China).
Investment Promotion Measures and Production Capacity
The Board of Investment (BOI) introduced investment promotion measures for the modern automotive industry or EVs, including production ratios for EVs to offset imports, with a 1:1 ratio in 2024 and a 1:1.5 ratio in 2025.
The production capacity of EVs in Thailand from Chinese car manufacturers was also highlighted, with production capacities specified for various brands such as Neta, Changan, BYD, GM, and GWM.
Private Sector Investment and Business Confidence
The NESDC assessed that private sector investment would be a driving force for Thailand’s economy in 2024, with the total value of investment promotion applications through BOI reaching 850 billion baht in 2023, the highest in five years. This included approved investment projects and investment promotion certificates worth 750 billion baht and 490 billion baht, respectively. The report also mentioned the improved business confidence index and continuous business sector recovery.
Investment Promotion Policy and Recommendations
Supporting factors from the investment promotion policy under the 5-year (2023-2027) investment promotion strategy are aimed at restructuring the Thai economy through promoting investment in 12 targeted industries.
Additionally, the report recommended accelerating all projects by entrepreneurs and investment promotion certificate holders approved during the 2021-2023 period, along with expediting approvals for projects previously submitted for investment promotion. It also suggested fast-tracking factory operators who have received business operation licenses to boost production capacity, employment, and new investments.
