China likely to dominate Thai EV market
Another significant change in the Thai EV ecosystem is a fierce battle among Chinese and Japanese automakers.
Even though Japanese automakers Toyota and Honda came in first and second places for the most booked brands in the 40th Motor Expo between November 30 and December 11, they were followed by Chinese automakers.
Toyota managed to retain its crown, with 7,245 units being reserved. Honda came in second place with 6,149 units, while China’s BYD was third with 5,455 units.
Chinese companies Aion, MG and Changan came in fourth to sixth places, with 4,568, 3,568 and 3,549 units booked, respectively.
Leading Chinese EV and battery manufacturers that have invested in Thailand as a manufacturing base include BYD, Changan Automobile, GSC Aion New Energy Automobile and Svolt Energy Technology.
Meanwhile, the China Automotive Technology and Research Centre (CATARC), has launched an automotive research centre in Thailand.
“CATARC will focus on EV policy development, standard-setting and certification,” said Thailand’s Industry Ministry permanent secretary, Nattapol Rangsitpol.
The collaboration will also connect China’s sophisticated EV industry – the biggest in the world – with Thailand’s domestic industry and infrastructure to support its mission of becoming a global EV manufacturing hub.
Based on these trends, it is possible that Chinese car companies could become the world’s top producers in the future. However, they still need to overcome some challenges, the foremost of them being quality, as Chinese cars are often perceived for being of lower quality than Japanese cars.
Another challenge is that brand recognition of Chinese car companies remains quite low, which could make it difficult for them to compete in overseas markets.
Challenges towards transition
Amid the flourishing EV ecosystem, several experts have expressed concerns and outlined challenges to the “green transition” in Thailand.
Shifting from internal combustion vehicles to EVs is crucial as 90% of transport-related carbon dioxide emissions in Asia-Pacific come from road-based transport.
Without decarbonising road-based transport, climate action would not be sustainable, said the UNESCAP section chief of transport, Dr Katrin Luger.
Electronics exporter and manufacturer Delta has pointed out the disparity between the Thai government’s active promotion of EV production and its insufficient support for charging stations.
The private sector currently bears the responsibility of investing in charging stations independently, hindering the growth potential of the EV industry in the country.
The number of charging stations and car parks significantly lags behind the production of electric vehicles, which is growing at a rate of three to four times annually, said director of energy infrastructure solutions, Kittisak Ngoenngokngam.
EV infrastructure should be ready in time to contribute to the green transition in Thailand, according to Kelvin Lim, group CEO of Durapower Holdings, Singapore’s energy solution provider.
However, Lim cautions that the transition will not happen unless both industry and potential users are ready for it.
“Infrastructure has to be ready before we see more electrification,” he said, adding that all people in Thailand should be able to use public EVs — including buses, trains and ferries — in order to meet decarbonisation goals.
What needs to be done?
Thailand is developing a “smart” grid to ensure effective electricity management, which is integrated with energy storage, demand-response and energy management systems.
According to the Energy Generating Authority of Thailand (EGAT), people who have planned to purchase EVs must upgrade electricity in their residences to support EV charger installation.
Thailand would have to build additional power plants to ensure there is sufficient electricity supply for an increasing number of EVs.
“The problem will occur with electric power,” said EGAT head of EV business solutions, Pichit Phongprasert.
“Strengthening the EV ecosystem to cover the needs of EVs, including charging stations, maintenance, insurance and regulation, would be the path to achieve net-zero carbon emission.”
