Thai EV Sales Are Expected To Slow Down As Banks Tighten Auto Loans

The Federation of Thai Industries (FTI) predicts that Thailand's sales of electric vehicles will fall short of goals this year as banks become more hesitant to approve new car loans given that the country's household debt is almost at an all-time high. The industry group reports that domestic auto sales in Thailand fell drastically in July 2024, registering a 20.5% year-over-year decline. Sales volumes fell to 46,394 units, a significant decline that was mirrored by a 16.6% year-over-year decline in total car manufacturing, with production figures falling to 124,829 units for the month.

According to Suroj Sangsnit, president of the Electric Vehicle Association of Thailand, 80,000 new battery-powered passenger EV registrations are expected this year. That is less than what the group had predicted earlier this year—150,000 units.
The lower sales forecast is bad news for Chinese automakers such as BYD Co. and Great Wall Motor Co., which only began producing locally-made vehicles this year after investing in factories to capitalize on Thai government incentives.

Thailand's auto industry group has reduced its total vehicle production forecast for this year to 1.7 million units, down from 1.9 million previously. Domestic automobile sales dropped 24% in the first seven months of the year, according to data from the Federation of Thai Industries.