South Korean media: 65%, Chinese electric vehicles sweep Thailand!
On April 4, South Korean media "The Korea Herald" published an article stating that Thailand leads the Southeast Asian electric vehicle market. Thailand has the most systematic automotive supply chain in ASEAN. Thanks to active government policies, expansion of charging infrastructure, and increased consumer demand, the electric vehicle market continues to grow.
Recently, the overall ASEAN automotive market has shrunk. In Q2 2024, Thailand's car sales fell by 24.2% year-on-year. The main reasons are deteriorating economic conditions such as inflation and rising interest rates.
However, the electric vehicle market grew by 5%, accounting for about 13% of new car sales. In particular, Chinese brands BYD, Neta, and MG stand out, capturing 65% of the Thai electric vehicle market.
Driven by this growth, many Chinese automakers have chosen Thailand as a production base. GAC Aion invested 2.3 billion baht to establish a factory with an annual output of 20,000 cars. BYD invested $486 million in Rayong to build a factory with an annual output of 150,000 cars and began operations in July 2024.
Changan plans to build its first pure electric vehicle factory in Thailand, with an annual output of 100,000 cars. Chery plans to produce 50,000 cars by 2025 and 80,000 cars by 2028. Great Wall acquired a General Motors factory with an annual output of 80,000 hybrid and electric vehicles. Neta is collaborating with Bangchan General Assembly to produce low-cost electric vehicles.
Vietnam's VinFast is also considering setting up a production base in Thailand and agreed to open 15 dealerships and 22 showrooms in Bangkok. On the other hand, Tesla initially considered building a factory in Thailand but decided to put off its Southeast Asia plant plans due to intensified competition with Chinese electric vehicle companies and weak global business performance, focusing instead on expanding charging infrastructure.
The expansion of Thailand's electric vehicle market is underpinned by active government support. The Thai government is investing 7.12 billion baht in the "EV 3.5" plan to promote domestic electric vehicle production and exempt hybrid vehicle consumption tax from 2028 to 2032. The Bangkok Mass Transit Authority is mass-introducing electric buses to replace old diesel buses and continues to receive financial support from the Asian Development Bank.
Charging infrastructure is also rapidly expanding. From December 2023 to June 2024, the charging network grew by 12%.
Source: https://www.toutiao.com/article/1828438307190164/
Disclaimer: This article solely represents the author's personal views.