State agency says Thailand well-placed to become EV hub of Southeast Asia

The office has been studying trends and EV markets at the global and regional levels, as countries are becoming more aware of the impacts of climate change, TPSO director-general Poonpong Naiyanapakorn said. EVs offered a more environmentally friendly alternative to internal combustion engine vehicles, while also minimising the risk from fluctuation of energy prices, he added.

TPSO’s report explored statistics from the International Energy Agency (IEA), which estimated that global EV sales in 2023 would be around 14 million units, rising 35% from 10 million units in the previous year. China manufactured 58% of the world’s EVs in 2022, or about 5.9 million units.

The global import value of plug-in EV (battery EV and plug-in hybrid EV) in 2023 was US$175.6 billion, increasing 29.4% year on year, with the United States, Germany and Belgium being the world’s top three importers, respectively.

Meanwhile, the global export value of plug-in EV last year was $201.49 billion, increasing 43.83% year on year, with Germany, China and Belgium being the world’s top three exporters, respectively.

Thailand imported plug-in EVs worth $3.04 billion in 2023, a massive 345.28% jump year on year, mostly from China ($2.54 billion), Germany ($172.16 million) and Malaysia ($119.06 million). This number is in line with domestic sales of EVs in 2023 of 168,425 units, which was 41.39% of all automotive sales compared to 71,450 EVs sold in 2022 – 20.52% of all automotive sales that year.

Last year Thailand reported a 326.78% year on year jump in export of EVs, worth $11.23 million. The kingdom’s biggest markets are Singapore ($3.48 million), Laos ($2.29) and Japan ($1.63).

TPSO estimated that Thailand’s sales and exports of EV this year would be even stronger, thanks to the government’s supporting policies and Thailand’s favourable location as an export hub in the region.

“Furthermore, EV markets in several countries are expected to enjoy higher demand due to the policies of their respective governments in investment promotion and boosting sales,” said Poonpong.

He pointed out that the government’s policies that had been benefiting then EV industry included the 30@30 initiative, which stipulates that Thailand must boost manufacturing capacity of EVs by 30% by 2030, as well as offer subsidies to EV buyers, importers and manufacturers.

“As Thailand is currently one of the world’s manufacturing bases of ICE [internal combustion engine] vehicles, most investors are confident that existing infrastructure would also help support the expansion of the EV industry,” said Poonpong. “These include logistics and supply chain networks, industrial estates, skilled personnel, and investment promotion packages.”