Thai auto market anticipates price war as Chinese EVs flood in
The Thai auto market is bracing for a potential price war as the influx of affordable electric vehicles (EVs), mainly from China, threatens the traditional dominance of internal combustion engine (ICE) vehicles. Over the next few years, the competition is set to escalate as two to three Chinese automakers plan to roll out their EVs in Thailand, capitalising on the government’s investment incentive policy, according to Ratthakarn Jutasen, managing director of Ford Thailand.
The cost-effective production of Chinese EVs has led to price tags that undercut domestic ICE vehicles, forcing traditional car manufacturers to recalibrate their strategies, said Ratthakarn during the Bangkok International Motor Show, which is open to the public until December 11.
“This is a tough competition because the Thai economy has not fully recovered and the country is dealing with high household debt and interest rates.”
He projected that EV sales in Thailand could reach 90,000 units this year, surging to 140,000 units in 2024. Currently, around 78% of EV sales are concentrated in Bangkok, with the remaining 22% spread across the country. This demographic distribution presents Ford with an opportunity to sell more pickups, its staple product, in rural provinces where ICE vehicles still hold sway, reported Bangkok Post.
In Thailand, the pickup market has been languishing, with sales plunging over 30% this year, largely due to banks stiffening their lending criteria amidst climbing household debt. Ford has seen its pickup sales drop by 20%. However, the US-based automaker is developing electric pickups to keep pace with the EV trend and plans to launch them in Thailand at an opportune moment.
Tri Petch Isuzu Co, the local distributor of Isuzu vehicles, is also looking to capitalise on the EV wave by producing battery-operated pickups in Thailand by 2025, primarily targeting the European market. The company is currently deliberating over the budget, models, and production capacity for this electric pickup project, said Takashi Hata, president of Tri Petch Isuzu. However, he noted that demand for electric pickups in Thailand remains relatively low.
In the luxury EV segment, meanwhile, sales are expected to hit 40,000 units this year, a substantial increase from the 30,000 to 35,000 units sold annually in recent years, according to Teeraphong Rodloy, country manager of Wearnes Automotive Thailand, an importer and distributor of British sports cars.
“The luxury car segment is not affected by weak consumer purchasing power.”
