Thai EV stocks to soar with renewed government support measures

Electric vehicle (EV) and battery manufacturing-related stocks are predicted to gain from the upcoming renewal of EV support measures by the government next year, according to Asia Plus Securities (ASPS). The EV Policy Committee will convene today, with new support measures for electric cars and pickups being anticipated. These measures are expected to adjust the subsidy to fall between 50,000 to 100,000 baht, a reduction from the current 70,000 to 150,000 baht scheme.

The upcoming EV subsidy package is set to replace the existing measures, which will expire by the end of the year. This development follows an urgent meeting called by Prime Minister Srettha Thavisin with the EV board today. The new package is likely to withdraw the subsidy for electric motorcycles, as informed by ASPS.

“If the government announces more policies to support EVs starting next year, it will strengthen investor confidence in Thailand and help to build up the domestic EV industry.”

The Thai Board of Investment sanctioned 23 projects for EV production from 16 different companies. Leading the EV manufacturing segment in Thailand are Chinese manufacturers, with BYD at the forefront. BYD’s Rayong plant possesses an annual production capacity of 150,000 units and has received a total investment of 17 billion baht reported Bangkok Post.

ASPS mentioned that the renewal of support measures for EVs would make related sectors attractive to investors again.

“Investors can make short-term speculative investments in stocks that are likely to benefit from such policies.”

The companies predicted to gain include industrial estate groups, with WHA Corporation being the top choice. Other beneficiaries are expected to be EV producers Energy Absolute (EA), Nex Point (NEX), and PTT, along with EV battery producers Global Power Synergy (GPSC) and EA.

The renewal of EV support measures is also expected to aid manufacturers of EV charging stations, including EA and PTT Oil and Retail Business (OR). Companies manufacturing electronic parts associated with EVs, such as Delta Electronics (Thailand), KCE Electronics, and Hana Microelectronics, are also likely to benefit, as per ASPS.

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