According to the Thailand Automotive Institute (TAI), despite low purchasing power, high household debt, and banks’ tougher auto loan requirements, sales of electric vehicles (EV) are anticipated to exceed a target of 50,000 units this year.
Local EV sales totaled about 20,000 automobiles in the previous year.
The government’s incentive program, which is a part of efforts to make Thailand a regional EV center, contributes to the continued popularity of EVs.
The cabinet adopted a set of incentives last year, including tax breaks and subsidies, to encourage EV manufacturing and sales between 2022 and 2023.
According to Kriengsak Wongpromrat, president of the TAI, “we expect the Thai automotive industry to be healthy this year, especially the EV sector, which will see steady sales.”
In the second half of this year, businesses would continue to import new EV models, particularly from China, as Thailand is considered a prospective EV market with significant consumer spending, he said.
According to Mr. Kriengsak, Chinese EV manufacturers may anticipate to see a rise in market share as more consumers choose EVs over ICE vehicles.
He noted that in order to hasten the transition of Thai auto parts manufacturers from internal combustion engines (ICE) to electric mobility technologies, the TAI is working with automakers, academic institutions, and EV engineers to teach and upskill them on EV concerns.
The training is taking place as the government works to develop the domestic EV market.
14 battery EV (BEV) manufacturers received investment promotion incentives from the Board of Investment during the first half of this year, totaling 33.9 billion baht in project value and a 276,640 unit annual production capacity.
The establishment of EV assembly factories in Thailand is a commitment from manufacturers who have received EV incentive packages.
By the first quarter of 2024, the TAI anticipates seeing the first locally produced BEVs.
The Automotive Industry Club of the Federation of Thai Industries had already reduced its 2023 car production target from 1.95 million to 1.9 million units as a result of banks tightening their auto loan requirements, which would have an impact on domestic auto sales. Mr. Kriengsak clarified that this change in lending standards does not necessarily indicate it will have a significant effect on the automotive sector.
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SOURCE: http://bangkokpost.com
