Shocking slump: Thailand’s premium EV sales plunge 35%

[webfact]

Thailand has experienced a significant decline in the sales of premium electric vehicles (EVs), dropping 35% year-on-year in the first half of the year. Despite this downturn, BMW remains optimistic about its EV sales, banking on the appeal of its newly launched models in the Mini family in Bangkok.

Sales of premium EVs fell to 3,844 units between January and June, according to Krisda Utamote, former president of the Electric Vehicle Association of Thailand (EVAT) and BMW Group Thailand’s director for corporate communications.

 

“This mainly resulted from banks’ stricter criteria in granting auto loans which affected people’s purchasing power and the economic slowdown which impacted the automotive industry.”

 

Overall, sales of premium cars, including both EVs and internal combustion engine-powered vehicles, also saw a 25% decline year-on-year, totalling 16,000 units. This is in stark contrast to the same segment’s total sales in 2023, which recorded a 25% year-on-year increase to 40,406 units, up from 32,325 units in 2022.

The EVAT predicts an economic recovery in the latter half of 2024, driven by the tourism sector and the government’s accelerated fiscal expenditure, Krisda added.

 

“The automotive industry is hopeful that these factors will contribute to an improvement in the economy compared to the first half of this year.”

 

Krisda spoke whilst BMW Group Thailand introduced new Mini models to the Thai market, including the fully electric Mini Countryman SE.

 

BMW and Mini cars, as well as motorcycles under the BMW Motorrad brand, are sold in Thailand. Between January and June, BMW Group Thailand saw an over 40% surge in EV sales, with 950 EVs registered during this six-month period.

 

Rene Gerhard, president and chief executive of BMW Group Thailand, mentioned that the company has not set a sales target for Mini cars in Thailand due to the current economic climate.

 

“We believe Mini cars will appeal to Thai customers as their pricing aligns with the economic situation.”

 

BMW has allocated its investment budget to its EV manufacturing plant in China, which produces EVs, including Mini cars, for export from China to Thailand under the Asean-China Free Trade Agreement.

 

by Bob Scot

Picture courtesy of Bangkok Post

 

Source: The Thaiger 2024-07-23

 

- Cigna offers a range of plans that meet the minimum requirement of medical treatment up to THB 3m. For more information on all expat health insurance plans click here.

 

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[Geoffggi]

They should read the reports on depreciation on second hand EV's, these vehicles are just not worth the expense 

[Crossy]

2 minutes ago, Geoffggi said:

They should read the reports on depreciation on second hand EV's, these vehicles are just not worth the expense 

 

Do you have links to these reports please. It's always good to have all sides of the discussion.

 

[Artisi]

Not unexpected, full electric are a con trick, whereas hybrid are worth the consideration and a good compromise. 

[JBChiangRai]

 

The share of new cars being EV's has climbed every month since February.

 

The share of new cars being ICE has declined every month since February.

 

All car sales have declined, but the EV share continues to climb.

[JBChiangRai]

11 minutes ago, Geoffggi said:

They should read the reports on depreciation on second hand EV's, these vehicles are just not worth the expense 

 

There is no difference in depreciation in Thailand.

 

There is a worked example on cars advertised in Thailand on the electric vehicles in Thailand thread.

 

[simon43]

I was talking to one of my online students in Hong Kong.  He was sitting in a restaurant because he and family had to stay for 2 hours in the shopping mall while the family EV was recharging....

 

Why didn't you recharge the car before you came out? I asked.  There is no EV charging at home - they live in a high-rise condo and the only EV charging is at the shopping mall and garages....

Edited July 23 by simon43

[redwood1]

Maybe in the future decades EVs might be worth buying but now they are a very poor investment and also a whole lot of trouble for many reasons.....Their sales are very slow all over the world...

[rocketboy2]

Any two for one,  deals.  

 

 

 

Edited July 23 by rocketboy2

[thaibeachlovers]

21 minutes ago, Crossy said:

 

Do you have links to these reports please. It's always good to have all sides of the discussion.

 

I don't have a link but everything I have heard on radio talkback shows point to a disastrous second hand market in EVs. Nobody wants something they have to spend thousands of $ on to change batteries. That may change of course, when batteries are easily changed, but that's not now.

Good condition second hand ICE cars are available for a few thousand $ ( 3 to 5 thousand $ ) and no average income person is buying second hand EVs when they cost biggly.

Add the problems for the electricity grid when it can't handle existing load, difficulty in disposal, pollution in production and the exploitation of workers for the raw materials doesn't help.

 

IMO EVs are heading for disaster once they have been around long enough for the problems to be come apparent

[JBChiangRai]

1 minute ago, redwood1 said:

Maybe in the future decades EVs might be worth buying but now they are a very poor investment and also a whole lot of trouble for many reasons.....Their sales are very slow all over the world...

 

Many reasons?

 

For example?

 

 

[thaibeachlovers]

1 hour ago, webfact said:

BMW Group Thailand saw an over 40% surge in EV sales, with 950 EVs registered during this six-month period.

LOL. How many million car owners in Thailand, and 950 is presented as some sort of triumph? Gimme strength.

[JBChiangRai]

12 minutes ago, thaibeachlovers said:

LOL. How many million car owners in Thailand, and 950 is presented as some sort of triumph? Gimme strength.

You are missing the important number which is 40%

[nakhonandy]

1 hour ago, webfact said:

Thailand has experienced a significant decline in the sales of premium electric vehicles (EVs), dropping 35% year-on-year in the first half of the year. Despite this downturn, BMW remains optimistic about its EV sales, banking on the appeal of its newly launched models in the Mini family in Bangkok.

Sales of premium EVs fell to 3,844 units between January and June, according to Krisda Utamote, former president of the Electric Vehicle Association of Thailand (EVAT) and BMW Group Thailand’s director for corporate communications.

 

“This mainly resulted from banks’ stricter criteria in granting auto loans which affected people’s purchasing power and the economic slowdown which impacted the automotive industry.”

 

Overall, sales of premium cars, including both EVs and internal combustion engine-powered vehicles, also saw a 25% decline year-on-year, totalling 16,000 units. This is in stark contrast to the same segment’s total sales in 2023, which recorded a 25% year-on-year increase to 40,406 units, up from 32,325 units in 2022.

The EVAT predicts an economic recovery in the latter half of 2024, driven by the tourism sector and the government’s accelerated fiscal expenditure, Krisda added.

 

 

“The automotive industry is hopeful that these factors will contribute to an improvement in the economy compared to the first half of this year.”

 

Krisda spoke whilst BMW Group Thailand introduced new Mini models to the Thai market, including the fully electric Mini Countryman SE.

 

BMW and Mini cars, as well as motorcycles under the BMW Motorrad brand, are sold in Thailand. Between January and June, BMW Group Thailand saw an over 40% surge in EV sales, with 950 EVs registered during this six-month period.

 

Rene Gerhard, president and chief executive of BMW Group Thailand, mentioned that the company has not set a sales target for Mini cars in Thailand due to the current economic climate.

 

“We believe Mini cars will appeal to Thai customers as their pricing aligns with the economic situation.”

 

BMW has allocated its investment budget to its EV manufacturing plant in China, which produces EVs, including Mini cars, for export from China to Thailand under the Asean-China Free Trade Agreement.

 

by Bob Scot

Picture courtesy of Bangkok Post

 

Source: The Thaiger 2024-07-23

 

- Cigna offers a range of plans that meet the minimum requirement of medical treatment up to THB 3m. For more information on all expat health insurance plans click here.

 

Get our Daily Newsletter - Click HERE to subscribe

The price probably doesn't help.

People just don't have the money either.

[JBChiangRai]

22 minutes ago, nakhonandy said:

The price probably doesn't help.

People just don't have the money either.

The mini is grossly overpriced in Thailand whether ICE or EV

[impulse]

1 hour ago, Geoffggi said:

They should read the reports on depreciation on second hand EV's, these vehicles are just not worth the expense 

 

I think that's a bit of a red herring.  Part of the reason they're depreciating is that the technology is coming along so rapidly, and the cost of manufacturing is coming down.  So this year, you can get a better car, for less money than last year.

 

That's hardly bad news for the EV market.  It may be bad news for early adopters, who may (or may not) have been willing to spend more money to be on the bleeding edge.  But it was the same with solar, and with computers and with microwaves and with big screen TV's and...and...

 

I feel for the buyers who got caught in the hype, not realizing they were buying an 80386 when the Intel I7s were just a few years away.  Or paid $5,000 for a 50" flat screen TV.  Which may have seemed like a bargain at the time.

 

[impulse]

17 minutes ago, JBChiangRai said:

The mini is grossly overpriced in Thailand whether ICE or EV

 

I have never understood the premium pricing model for the Minis or the Smart Cars.

[hotchilli]

4 hours ago, webfact said:

“This mainly resulted from banks’ stricter criteria in granting auto loans which affected people’s purchasing power and the economic slowdown which impacted the automotive industry.”

The elites in Thailand have bought their premium brand EV if they wanted one.. they have the resources to do so.

The rest living on a budget are opting for the affordable Chine brands.

[motdaeng]

31 minutes ago, hotchilli said:

The elites in Thailand have bought their premium brand EV if they wanted one.. they have the resources to do so.

The rest living on a budget are opting for the affordable Chine brands.

 

that was and still is true for all ICE cars as well ... nothing new!

 

btw, affordable chinese ev cars are much better than their reputation suggests,

and their prices are coming down too ...

 

Edited July 23 by motdaeng

[Celsius]

that's today

 

tomorrow will be a shocking rebound - sales up 140%

[jchfriis]

2 hours ago, impulse said:

 

I have never understood the premium pricing model for the Minis or the Smart Cars.

Minis = BMW.

Smart = Mercedes

Maybe that is the reason.

[Andycoops]

Good, I hope the chinese lose all their investments, I for one won't be buying the crap particularly if it's labelled premium.

 

I haven't come across anything remotely premium in their products to date, cheap crap 

[JBChiangRai]

3 minutes ago, Andycoops said:

Good, I hope the chinese lose all their investments, I for one won't be buying the crap particularly if it's labelled premium.

 

I haven't come across anything remotely premium in their products to date, cheap crap 

 

You clearly haven't looked at any Chinese EV's.

[jcmj]

Considering that the electric prices have been rising, and the news for even higher rates, it is no surprise that people are thinking twice before buying an EV. I’m still not convinced that the EV is a good thing. Still too many unknowns. 

[vinny41]

Byd atto3 owner recently posted on the facebook groups that his car value has dropped B650,000 iin 2 years  excluding interest charges after BYD recent price reductions

he stated that tents unwilling to accept risks of taking EV's until Brands stated no further price reductions

he received one private offer of betweeen B500K-B550K offer subject to viewing when asked why low offer buyer indicated that they weren't sure if BYD would lower there prices again so offer was based on that they would lower their prices

Depreciation is expected with any car but when the manufacturer reduces the price by up to 32% either to clear stock or generate increased sales that's the big hitter

https://www.facebook.com/photo/?fbid=485876037294148&set=a.176402778241477

[JBChiangRai]

2 minutes ago, jcmj said:

Considering that the electric prices have been rising, and the news for even higher rates, it is no surprise that people are thinking twice before buying an EV. I’m still not convinced that the EV is a good thing. Still too many unknowns. 

 

You're right, with electricity going up 20% an EV might only be 4 times cheaper to run than an ICE car, currently it's around 5 times cheaper.

[impulse]

14 minutes ago, JBChiangRai said:

 

You clearly haven't looked at any Chinese EV's.

I'm loving the Xiaomi SU7's that have recently started cruising the streets where  l live in China.

 

 

Here's the prototype of the upgraded model.

 

Gorgeous cars, even the base model.  Apparently priced like a Chevy Bolt, if the articles are true.

 

Edit:  Oops.  Links:

 

https://insideevs.com/news/714268/xiaomi-su7-debut-release-bolt/

 

https://www.gizmochina.com/2024/03/28/xiaomi-su7-official-launch-details/

Edited July 23 by impulse

[Chongalulu]

4 hours ago, redwood1 said:

Maybe in the future decades EVs might be worth buying but now they are a very poor investment and also a whole lot of trouble for many reasons.....Their sales are very slow all over the world...

Not in China they aren’t,but that is an outlier in terms of their very cheap prices and is scaring the European and USA motor manufacturers and prompting huge tariffs.

[Chongalulu]

36 minutes ago, Andycoops said:

Good, I hope the chinese lose all their investments, I for one won't be buying the crap particularly if it's labelled premium.

 

I haven't come across anything remotely premium in their products to date, cheap crap 

They’ve got the European and USA markets terrified such are their price differences. The EU and USA are imposing very high tariffs to combat this and could trigger a trade war. Yes that’s on standard models but there are premium models too as another poster has pointed out.

[lavender19]

Doesn't look like the insurance industry like them either 

https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/88708/type/eDaily/Thailand-Auto-insurers-rethink-how-to-cover-EVs