Chinese electric car makers are expected to dominate Thailand’s electric car market with a market share of about 80 percent this year, up from 58 percent last year, thanks to government subsidies that have lowered purchase prices, among other reasons, according to data. China’s Great Wall Motor, Thailand’s best-known electric car brand, is said to have sold more than 2,000 vehicles since entering the market a year ago, with more than 3,000 people waiting for Great Wall electric car deliveries this year.
SAIC’s electric cars are also popular with Thai drivers, selling more than 4,500 units in Thailand last year, and sales are expected to grow further this year. In addition, the Ola Good Cat sold out of 500 units in stock in 58 minutes when the model was launched last week.
The Thai government plans to have electric vehicles account for 30 percent of Thailand’s vehicle production by 2030. To reach this goal, the government is reportedly offering EV buyers subsidies of up to 150,000 baht ($28,000) per vehicle; on June 9, the Thai government reduced the tax rate on EVs from 8 percent to 2 percent in exchange for a commitment from manufacturers to produce EVs in the country in the future.
Provisions of the China-ASEAN Free Trade Agreement, which has been in effect since 2005, allow China to ship electric vehicles to Thailand tariff-free, also providing further advantages for Chinese brands.
On June 13, Thailand’s Investment Promotion Board approved a 36.1 billion baht ($6.7 billion) joint venture between Foxconn and Thai National Petroleum Group (PTT) to produce pure electric vehicles. The chairman of Hon Hai said that mass production of electric cars in Thailand will be achieved in 2024.