Thailand Accelerates EV Parts Production to Reinforce ASEAN Leadership Role

Thailand is on its way to becoming the central hub for electric vehicle (EV) production in the ASEAN region. This progress is supported by government policies and measures that encourage investments and the developments of the EV industry, such as tax exemptions and building the necessary infrastructure to meet future demand, helping to accelerate the transition to the electric vehicle era rapidly.

Key advancements and achievements of Thailand in the EV sector :

1. EV Battery Production : Major Thai energy company PTT, in collaboration with Foxconn, has established a comprehensive EV production facility, set to begin production in 2024. This plant will be a significant part of building an EV ecosystem in Thailand and position the country as a battery production hub for electric vehicles in the region.
2. Attracting Foreign Investment : Besides its collaboration with Foxconn, leading Chinese EV brand BYD has decided to invest in Thailand to expand its EV production with a new plant, which is also expected to begin operations in 2024. This investment will enhance production capacity and support the domestic EV market.
3. Government Support Policies : The Thai government has issued several supportive measures, particularly the "30@30" policy, which aims for at least 30% of all vehicles produced in Thailand by 2030 to be zero-emission vehicles (ZEV). This policy will significantly promote the production and use of EVs in the country.

In 2023, electric vehicle sales in Thailand surged, accounting for over 20% of the total vehicle sales in the country. With the expansion of EV production plants and government support measures, it is expected that sales will continue to grow, positioning Thailand as a leader in the EV sector within the ASEAN region.

For additional information : Krungsri Research, Bank of Ayudhya
Tel. 1572
Link : https://www.krungsri.com/th/research