Global car firms urge fair Thai EV promotion amidst competition fears
European, American, and South Korean automobile manufacturers are urging the Thai government to ensure its electric vehicle (EV) promotion policy benefits all EV makers evenly. This plea arises amidst growing concerns that Chinese and Japanese rivals might be enjoying an unfair advantage.
Industry Minister Pimphattra Wichaikul revealed these countries are seeking enhanced support for their EV sales and automotive supply chains. This is in light of Thailand’s efforts to bolster its domestic EV market.
“These countries want the government to take better care of them because they think Chinese and Japanese car companies have an advantage over them.”
Pimphattra assured that the government’s support towards all car companies’ sales and investments through EV incentive packages is unbiased. She expressed confidence that European, American and South Korean car companies will persist in developing and investing in EV technology and production to broaden their businesses.
In recent developments, the Thai government launched a roadshow to invite US-based companies to expand their businesses in Thailand. This move, according to Pimphattra, has piqued the interest of US automakers in investing in the country.
Last month saw the Cabinet’s approval of a new EV incentive package, named EV3.5, aimed at further fostering the EV industry. The scheme, worth 34.1 billion baht (US$961 million), includes subsidies, reduced import duties for fully assembled cars, and an excise tax cut. However, to participate in EV3.5, car companies are obliged to commence domestic EV production starting in 2026, reported Bangkok Post.
Surapong Paisitpatanapong, Federation of Thai Industries (FTI) Vice Chairman and Automotive Industry Club spokesperson, pointed out that Chinese and Japanese car firms also gain from other trade privileges. These include the ASEAN-China free trade agreement (FTA) supporting the import of Chinese products into Thailand, and the Japan-Thailand Economic Partnership Agreement fostering trade and investment between Japan and Thailand.
Surapong highlighted that despite the government’s effort to ensure equal access to EV incentive packages, countries, particularly from Europe and the US, have yet to sign FTAs with Thailand. The FTI regularly advocates for hastened trade agreement negotiations with Europe and the US to foster trade and investment.
Given Thailand’s rapidly expanding market, Surapong anticipates increased investment from more EV companies.
