Shocking slump: Thailand’s premium EV sales plunge 35%

Thailand has experienced a significant decline in the sales of premium electric vehicles (EVs), dropping 35% year-on-year in the first half of the year. Despite this downturn, BMW remains optimistic about its EV sales, banking on the appeal of its newly launched models in the Mini family in Bangkok.

Sales of premium EVs fell to 3,844 units between January and June, according to Krisda Utamote, former president of the Electric Vehicle Association of Thailand (EVAT) and BMW Group Thailand’s director for corporate communications.

“This mainly resulted from banks’ stricter criteria in granting auto loans which affected people’s purchasing power and the economic slowdown which impacted the automotive industry.”

Overall, sales of premium cars, including both EVs and internal combustion engine-powered vehicles, also saw a 25% decline year-on-year, totalling 16,000 units. This is in stark contrast to the same segment’s total sales in 2023, which recorded a 25% year-on-year increase to 40,406 units, up from 32,325 units in 2022.

The EVAT predicts an economic recovery in the latter half of 2024, driven by the tourism sector and the government’s accelerated fiscal expenditure, Krisda added.

“The automotive industry is hopeful that these factors will contribute to an improvement in the economy compared to the first half of this year.”

Krisda spoke whilst BMW Group Thailand introduced new Mini models to the Thai market, including the fully electric Mini Countryman SE.

BMW and Mini cars, as well as motorcycles under the BMW Motorrad brand, are sold in Thailand. Between January and June, BMW Group Thailand saw an over 40% surge in EV sales, with 950 EVs registered during this six-month period.

Rene Gerhard, president and chief executive of BMW Group Thailand, mentioned that the company has not set a sales target for Mini cars in Thailand due to the current economic climate.

“We believe Mini cars will appeal to Thai customers as their pricing aligns with the economic situation.”

BMW has allocated its investment budget to its EV manufacturing plant in China, which produces EVs, including Mini cars, for export from China to Thailand under the Asean-China Free Trade Agreement.