Nex point projects commercial EV sales to hit 5,556 by 2024

Photo courtesy of Nex Point

Nex Point, a SET-listed local assembler of commercial electric vehicles (EVs), is forecasting sales to hit 5,556 units by the end of 2024. This projection stems from an increased demand from businesses operating in the transport and logistics industries.

A rise in such interest is tied to these sectors’ growing commitment to lower carbon emissions. Between January and September of the previous year, Nex Point recorded sales of 3,000 units, driven primarily by corporate strategies to cut carbon emissions from their vehicle fleets.

The shift towards battery-powered vehicles is evident, even in the face of government subsidies for diesel prices. This observation was made by Khanist Srivajiraprabha, founder and chief executive of Nex Point. The firm produces buses, pickups, and tractor units at its manufacturing facility located in the Ban Pho district of Chachoengsao.

Nex Point operates its business via its subsidiary, Absolute Assembly Co. This entity is a joint venture with Energy Absolute Plc, an EV and renewable energy developer and operator, owning a 55% stake. Nex Point holds the remaining 45%, reported Bangkok Post.

Khanist is confident that the demand for electric commercial vehicles will maintain an upward trend this year. Nex Point began deliveries to its customers in 2023, following production delays due to the Covid-19 pandemic.

“The domestic economy is not expected to grow significantly this year, but this is good for the EV business as logistics operators are tending to change from oil-powered vehicles to EVs to save expenses over the long term.”

Reimbursement incentivised

Despite commercial EVs being costlier than internal combustion engine (ICE)-powered vehicles, operators are incentivised with reimbursement after using battery-run vehicles for three years.

Among Nex Point’s clientele is Logistics Asia, a logistics service provider for Thai Namthip, a local bottler for Coca-Cola Co. The firm is increasingly focusing on green logistics in line with a global trend among companies to minimise their carbon footprint.

Leandro Martin Chazarreta, Chief Executive of Logistics Asia, announced that the company would allocate 100 million baht (US$2.7 million) to support a plan to transition from ICE-powered vehicles to EVs in the coming years. The firm recently added 10 electric trucks to its fleet, with another 18 units expected to arrive next month. The total count of vehicles is projected to reach 50 by 2024.

Furthermore, in 2025, Logistics Asia plans to purchase an additional 30 electric trucks. According to Chazarreta, the company aims to have EVs comprise 25% of its nearly 400 trucks. This initiative is part of the company’s goal to achieve a net-zero target—a balance between greenhouse gas emissions and absorption—by 2040.

In related news, Thailand aims to become ASEAN’s eco-friendly logistics hub. Advocating smart and green industries, a campaign urged government support. Highlights from Tilog-Logistix 2023 included eco-friendly measures.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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