EV Sales In Thailand Will Hit 50,000 In 2023 Despite Auto Loan Regulations

Despite challenges such as low purchasing power, high household debt, and banks tightening car loan criteria, the Thai Automobile Institute (TAI) predicts that sales of electric vehicles (EVs) in Thailand will reach 50,000 units this year.
Bangkok Post reported that around 20,000 electric vehicles were sold in the country by 2022.

Electric vehicles are becoming increasingly popular in Thailand, thanks in part to the government's stimulus package aimed at establishing Thailand as a regional hub for electric vehicles.
Last year, the cabinet approved a slew of stimulus measures, including tax breaks and subsidies, aimed at increasing EV consumption and production in 2022-2023.

TAI Chairman Kriengsak Wongpromrat expressed optimism about the industry's prospects, particularly in the electric vehicle sector, and predicted stable sales.
He stated that companies are planning to import new EV models, particularly from China, in the second half of the year, citing Thailand as a potentially high-spending market for EV buyers.

As more consumers choose EVs over internal combustion engine (ICE) vehicles, Chinese EV manufacturers are expected to gain market share. TAI is collaborating with automotive companies, academic institutions, and EV engineers to educate and upskill Thai auto parts manufacturers in EV technology to support this transformation.

In the first half of this year, Thailand's Board of Investment granted investment promotion benefits to 14 electric vehicle manufacturers with a total project value of 33.9 billion baht.
These companies have pledged to build electric vehicle assembly plants in the country. The first battery electric vehicles produced locally are expected to be available in the first quarter of 2024.

Although banks have tightened their auto loan criteria, which may affect domestic auto sales, TAI Chairman Mr Kriengsak believes the auto industry will be unaffected.