Connect with us

Business

Huge potential for electric car industry in Thailand

Thaiger

Published 

 on 

Have you considered getting an electric car yet? What’s your impediment? Cost? Selection? Too ‘out there’ for you at this stage?

Electric cars (EVs) are yet to go mainstream in Thailand as yet. But there is little doubt the popularity of locally built and imported EVs will rise over the next few years. There will be more choice, the cars will become more affordable, travel further on a charge, and there will be more convenient and numerous refuelling stations around the country.

There’s certainly now general consensus among international motorists that it’s time to move to eco-friendly alternatives as the best long-term solution to vehicle-produced air pollution from fossil fuels. Up to now the costs of the electric alternatives have been high, ownership seen as a ‘statement’ rather than as ‘just a car’, and the lack of refuelling stations making owning an electric vehicle more problematic.

It’s certainly not about performance anymore with many new electric cars now making their petrol cousins look like grandma’s Sunday drive in the old Volvo (with apologies to Volvo drivers of the past. But… really…).

But, so far, Thai motorists haven’t embraced EVs. Certainly many are waiting for more availability of infrastructure to support EV, such as recharging stations. The price is still higher than an equivalent petrol or diesel model and the selection has been limited. There’s also been a lot of new ‘hybrid’ models – part electric, part conventional engine – that are confusing the buyers who don’t yet have a clear understanding of what an EV is and what a hybrid is, how they work and the various versions offered by car-makers.

Whilst many of the hybrid versions are offered as part of a current model line-up, the full EVs are usually a stand-alone design.

Huge potential for electric car industry in Thailand | News by Thaiger

PHOTO: Toyota hybrid C-HS model, built in Thailand

There’s also the old perception that they don’t have any performance, don’t go far between charges, the batteries need replacing every few years and they will be difficult to resell. In all cases there have been huge technical and infrastructure advances making the claims mostly redundant.

A survey last year by Frost & Sullivan suggested that 37% of Asians are currently interested in owning an EV, with those in the Philippines, Thailand and Indonesia having the highest purchasing power and interest in upgrading. The reasons behind their motivation to purchase EVs included the environment, safety, convenience and financial readiness.

Locally, the Thai government has supported the industry by introducing incentives for automakers to turn green and encouraging petrol companies to invest in EV and rechargeable technology. This year there has also been a number of automakers seeking the Thai Board of Investment approval with the incentives to produce EVs in Thailand.

Currently, only around 120,000 passenger EV cars are running on Thai roads, representing only tiny 1.2% of the total passenger cars. The Thai government plans to increase the number of EVs to rise to 1.2 million units by 2036, which would help cut energy consumption by 30% compared to 2010, according to the energy conservation plan.

Over the next ten years Thailand is expected to have 690 recharging stations nationwide, that compares to around 25,000 petrol\gas stations around the Kingdom now. It is also envisaged that some of the petro-chemical companies will take up the bigger challenge and start offering EV charging stations at their current facilities.

In the next five years, industry analysts forecast that the EV market share has a potential to increase to one-fourth, or 240,000 units, of the total car sales nationwide. The eco-hybrid cars and mild-hybrid vehicles are likely to accelerate the transition to full EVs in the early stages.

Kasikorn Research predicts that when the EV production is approaching its full capacity in 2023, at least 260,000 units of EV batteries will be rolled out to serve the demands in Thailand. Also, there is a possibility that EV battery companies will use Thailand as a base for exports.

So Thailand is emerging as a regional base for EV batteries for export to countries such as Japan and ASEAN. Kasikorn Research forecasts that in 2023, Thailand will produce at least 170,000 EV batteries for export.

The production of EVs will also accelerate the opportunity for the producers of power inverters and on-board chargers which are EV parts. Some of international companies have begun investing in Thailand to sell these EV components to other countries too.

The downside is that the makers of conventional combustion engines, cars and vehicles will start to see a drop in demand, an industry that has heavily invested in Thailand in recent decades. Last year the largest export market for Thailand was still cars.

SOURCE: Thai PBS World

Huge potential for electric car industry in Thailand | News by Thaiger

PHOTO: Full EV, the Nissan LEAF

 

Want more Thailand news from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📝️ Join the conversation on Thaiger Talk - discuss news & life in our Thailand forums
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

If you have story ideas, a restaurant to review, an event to cover or an issue to discuss, contact The Thaiger editorial staff.

Follow Thaiger by email:

World7 mins ago

Fire at Chinese martial arts school kills 18, mainly kids

Thailand50 mins ago

Man allegedly steals almost 300,000 baht from monk

Thailand2 hours ago

Illegal cigarette shipment busted, valued at 30 million baht

Phuket Sandbox July 1st

days
hours
minutes
seconds

Thaiger is getting behind local businesses for the restart of tourism in July - up to 50% discounts across all advertising packages in June!

image
Join the conversation on the Thaiger Talk forums today!
Thailand3 hours ago

Pair arrested for allegedly stealing prepaid phone cards worth 240 million baht, take home almost 150

Best of4 hours ago

Top 5 Indian Restaurants in Bangkok

Phuket4 hours ago

A Korean restaurant catches fire at a Phuket shopping centre

Best of5 hours ago

Top 10 Provinces to visit in Thailand

Coronavirus (Covid-19)5 hours ago

Pfizer-BioNTech vaccine approved for emergency use in Thailand

World5 hours ago

1 dead 99 unaccounted for in Florida building collapse

World5 hours ago

Airlines participate in trials of IATA Travel Pass app

Best of5 hours ago

Top 8 Street Foods in Thailand

World5 hours ago

A bed in the sky: Shanghai opens world’s highest luxury hotel

Thailand6 hours ago

GMT Live | Bangkok Covid situation, Klongtoey slums, Sandbox squabbles

Coronavirus (Covid-19)6 hours ago

Covid-19 cluster found at children’s home outside Bangkok

Best of6 hours ago

Top 5 Floating Markets in Bangkok

Thailand4 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism4 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket4 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism4 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand4 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism4 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand5 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand5 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand5 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand5 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand5 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand5 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand5 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand5 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand6 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending