FLEETDRIVE
Thailand has its own national authority governing their EV sector known as the National Electric Vehicle Policy Board, or EV Board. The country also has a separate association for EVs known as the Electric Vehicle Association of Thailand( EVAT).
The likes of BYD, BMW, and Great Wall Motor took advantage of early EV incentives set by the Thai government, attracting around AUD 2.3 billion in investments. Notably, BYD’ s first EV plant in Southeast Asia was built in Thailand’ s city of Rayong in July 2024. This specific plant is key to BYD’ s overall expansion into the Southeast Asian region. Fellow Chinese EV maker Changan partnered with Thailand’ s AAPICO Hitech and Thai Summit Group for a procurement plan to further EV production in the country.
Similarly, GAC Aion inaugurated its first overseas plant in Rayong in the same month while BMW’ s Rayong plant produces Gen-5 high-voltage batteries for its EVs. Japan’ s Isuzu Motors also chose Thailand as its production base for the D-MAX electric pick-up truck.
Later in 2025, Mazda and Thailand’ s Board of Investment( BOI) announced an investment of THB 5 billion( AUD 234 million) to produce a line of EVs— two BEVs( battery electric vehicles), one plug-in hybrid( PHEV), and two hybrid cars. Last March, the Thai government also greenlit the construction of an EV battery factory worth AUD 1.5 billion for the Chinese battery maker, Sunwoda. Also manufacturing batteries in Thailand is SVOLT Energy Technology and their local partner Banpu Next.
In 2024, the government announced another set of incentives for hybrid manufacturers. Set to begin in 2028, excise taxes imposed on hybrid vehicles will be reduced. To qualify for these reductions, companies must inject a minimum investment of THB 30 million( AUD 1.4 billion) in the period of 2024 – 2027. The investments themselves must be related to the advancement of hybrid technology. Furthermore, the vehicles to be manufactured must have its key components manufactured in Thailand, feature at least four advanced driver-assistance systems( ADAS), and comply with Thailand’ s carbon emissions limits.
In 2023, EV sales in Thailand surged by 320 per cent compared to the previous year. Sales stalled in 2024, as EVAT negotiated with the Thai government to extend its deadline on vehicle production targets for organisations to avail of its incentive schemes.
The following September, an EV subsidy programme was created with a budget of THB 7.12 billion or AUD 341 million. This subsidy program was divided into 3 phases with the first providing up to THB 150,000( AUD 7,185) in assistance for EVs priced up to THB 2 million( AUD 95,809) and up to THB 18,000( AUD 862) for electric motorcycles that sell for less than THB 150,000.
Though the government is providing subsidies for citizens to purchase EVs, several challenges deter the shift to EVs in Thailand. First, the most crucial challenge is the low approval rate of loans for pick-up trucks and vehicles. This specific challenge affects Thailand’ s overall auto industry, especially EVs. Electric pick-up trucks are pricier compared to regular passenger EVs, as they are larger in size and thus, require larger batteries. In Thailand’ s auto market, pick-up trucks make up to a third of the overall market. Hence, to alleviate its market of poor sales, the Thai government announced in March 2025 that it would guarantee approvals for pick-up truck loans.
Second, Thailand may still be lacking in charging ports with only 10,000 ports across the country. Most of these ports are present only in urban areas, making charging scarce for those living in rural areas.
Lastly, the presence of many foreign EV makers in Thailand brings with it tight competition in the market for vehicles and supply parts. The country’ s auto sector is in dire need of improvements after hitting a 5-year low that started during the pandemic. Thus, the government is in talks to implement a trade-in scheme to boost the market’ s performance.
ISSUE 52 APRIL 2025 / WWW. AFMA. ORG. AU 13