Thailand Electric Vehicle Market Faces Challenges Amid Incentive Reevaluation

Tuesday, 10 September 2024, 21:45

Thailand's electric vehicle market is witnessing a slowdown in sales, prompting manufacturers to seek renegotiation of government incentives. The decline in electric vehicle sales raises concerns for EV makers and highlights the challenges in meeting production targets set by the government. As the industry pushes for extended deadlines, the future of electric cars in Thailand remains uncertain.
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Thailand Electric Vehicle Market Faces Challenges Amid Incentive Reevaluation

Thailand's Electric Vehicle Landscape

Thailand's electric vehicle (EV) makers are grappling with slowing sales, prompting them to reevaluate government incentives offered to boost the industry.

Challenges in Meeting Production Targets

As the demand for electric cars falters, the Electric Vehicle Association of Thailand (EVAT) is requesting the government extend production deadlines set in their incentive scheme.

  • Government Incentives have attracted over $1.44 billion in investments from major companies like BYD and Great Wall Motor.
  • To maintain eligibility for tax breaks, manufacturers must meet strict production quotas.
  • Concerns regarding tightened loan requirements from banks further complicate the sales landscape.

Industry Response

Suroj Sangsnit, president of EVAT, is advocating for more time to fulfill production expectations.

  1. Negotiations are underway to potentially extend the production deadline by one year.
  2. EVAT seeks to stabilize the industry amidst lower-than-expected sales.
  3. Electric car sales in 2024 are projected to miss targets, with only 43,000 units sold against a goal of 100,000.

The situation illuminates broader issues, including high household debt impacting consumer credit and the overall strength of the Thai auto market. Major stakeholders are pressing for increased financial support from local banks to facilitate EV purchases.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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