Thailand Facing EV Price War Amid Rising Local Production

Thailand's automotive industry anticipates strong pricing competition in the electric vehicle (EV) market, led by a rise in local manufacture by Chinese automakers. This aggressive pricing strategy reflects the fierce rivalry in the EV market, as manufacturers compete to attract price-conscious buyers.

Reuters reported in July last year that Thailand's consumer protection office had received over 70 complaints after launching an investigation into BYD dealers' excessive selling price discounts, which left some previous BYD buyers believing they had overpaid for their new EVs. This is not a new trend as other EV manufactures have already offered significant reductions in their prices.



According to the Electric Vehicle Association of Thailand (EVAT), EV sales in Thailand, known as the biggest EV market in Southeast Asia, are expected to rise by 40% this year, surpassing 100,000 units. This follows an 8% dip in sales last year.

This anticipated surge is partly due to a national incentive program that requires local manufacturing of 1.5 vehicles for every imported vehicle to qualify for tax benefits. As a result, Thailand registered 70,000 new EVs last year and imported around 84,000 EVs between 2022 and 2023.


Despite these benefits, industry observers warn about increased pricing competitiveness. Companies such as Great Wall Motor reportedly reduced prices, lowering the cost of their Ora Good Cat by up to 270,000 baht, while GAC AION reduced the cost of its AION Y Plus by 166,000 baht.

This "price war," as stated by Tita Phekanonth of Siam Commercial Bank's Economic Intelligence Unit, may also affect internal combustion engine vehicles.

Thailand has seen significant investments in localisation efforts in recent years from key Chinese EV manufacturers, including BYD, MG, SAIC Motor, and Great Wall Motor.

The potential localisation of EV supply chains in Southeast Asia is a viable paradigm in which Chinese firms might play a critical role in increasing industrial capacity, producing value-added supply chains, and creating local jobs.


Long before Thailand experienced the EV revolution spearheaded by China, Japanese automakers controlled the majority of the Thai vehicle market. These days, Chinese EV manufacturers are not only threatening Japan's lead in overall auto sales, but they are also setting the groundwork for a more extensive parallel EV supply chain in the nation.