Visitors view EV and other cars at this year’s Motor Show held in March, 2023. (Photo: Pattarapong Chatpattarasil)
Electric vehicle (EV) sales in Thailand slowed considerably in 2024 following explosive growth of 320% in 2023, as a reduction in incentives offered to consumers and stricter loan requirements negatively impact the pace of adoption.
Despite these challenges, we still estimate growth was 10.5% in EV sales for 2024, as the continued drop in prices and increased local production sustained momentum.
That would represent an EV penetration rate of 15.4% in 2024 as weaker demand from traditional internal combustion engine (ICE) car sales inflates EV sales as a percentage of the total.
EV manufacturers in Thailand are seeking to extend production deadlines set by a government incentive scheme as sales have not met expectations. The scheme has attracted US$1.4 billion in investment from China-based firms including BYD and Great Wall Motor, positioning Thailand as a regional EV production hub.
The Electric Vehicle Association of Thailand (EVAT) is negotiating with the government to extend production deadlines by another year for firms seeking to qualify for incentives. The current EV3.0 plan requires companies to produce the same number of vehicles in Thailand in 2024 as they imported between 2022 and 2023, with stricter targets for 2025.
Lower than expected EV sales are part of a broader decline in the Thai auto industry, which recorded a 25.3% contraction in car production in the first nine months of 2024.
In September, the Thai government approved a budget of 7.12 billion baht for an EV subsidy programme. The first phase provides subsidies of up to 150,000 baht for EVs priced up to 2 million baht, and up to 18,000 baht for electric motorcycles priced less than 150,000 baht.
These subsidies go directly to man- ufacturers, with buyers claiming them upon vehicle registration.
BYD opened its first EV plant in Southeast Asia, located in Rayong. The $486-million facility is expected to employ around 10,000 workers and produce 150,000
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