Chinese EV Brands Seek Lower Production Targets in Thailand

Chinese electric vehicle (EV) manufacturers are making a plea to the Thai Government to ease production requirements under Thailand's EV3.0 incentive program, reports Bangkok Post.

The EV3.0 program, outlined by the Federation of Thai Industries (FTI) reports Bangkok Post, sees automakers receiving tax and duty benefits obliged to locally assemble EVs from 2024 onwards. They must meet a 1:1 production ratio, meaning for every imported EV, one must be produced domestically. This target is set to increase to 1.5:1 in 2025.

These brands, which include BYD, Changan, Great Wall Motor, MG, GAC Aion, Omoda & Jaecoo, Neta, and Zeekr, are concerned about sluggish domestic car sales and oversupply. To mitigate these issues they are looking to engage the government for flexibility in fulfilling the goals.

The current weak car sales linked to slow Thai economic growth and tighter bank car loans approval rate are creating obstacles for these manufacturers.

Despite these challenges, Surapong Paisitpatanapong, vice-chairman of the FTI’s Automotive Industry Club, remains optimistic that EV sales will continue to rise, even as internal combustion engine vehicle sales falter.

From Jan to Aug 2024, battery EV sales in the passenger cars segment grew by 13.8% year-on-year, with hybrid EV sales surging by 62%.

The National Electric Vehicle Policy Committee, led by Prime Minister Paetongtarn Shinawatra, is expected to meet soon to address the manufacturers' concerns and possibly ease production targets.