Thailand's Auto Industry Faces Crossroads: BEVs or ICE Transition?

[snoop1130]

File photo for reference only

 

Thailand's car production industry, crucial to its economy, is at a crossroads: whether to invest in battery electric vehicles (BEVs) or transition the internal combustion engine (ICE) sector towards electric vehicles (EVs). The decision, under the purview of the National EV Policy Committee spearheaded by the Prime Minister, weighs heavily on the country's automotive future, especially with a new seven-year support plan for the ICE industry.

 

In an attempt to ease into the electrification process, the government has announced reduced excise tax on hybrid vehicles. This move aims to benefit local and international players, particularly Japanese companies like Honda and Toyota, which have historically utilised Thailand as an ICE production hub. However, concerns are brewing that this tax strategy might inadvertently hinder the country’s EV ambitions.

 

The policy set on December 1 outlines reduced excise tax rates for hybrid EVs and mild hybrids, initiating a shift to cleaner mobility solutions. The tax will vary based on carbon emissions, with incentives for investments in local component production. Companies must invest significantly to qualify for these benefits, aligning with Thailand's goal to foster locally sourced parts.

 

 

Hybrids offer a transitional bridge, especially given infrastructure shortcomings concerning EVs. Yet, criticisms arise over a seven-year advantage granted to Japanese keystone manufacturers, potentially decelerating technological progress.

 

Thailand’s burgeoning EV market, showing a 12-13% annual growth, competes with robust Chinese NEV production. While Thailand remains a production base for Chinese EVs, it pales against China's output. However, the established local supply chain, aligned with governmental support, positions Thailand strategically within the ASEAN automotive sector.

 

Navigating these industry and policy challenges is vital for Thailand's aspirations in the global EV movement, necessitating a delicate balance between supporting existing industries and pioneering future transportation.

 

 

-- 2025-01-20

 

 

[hotchilli]

12 hours ago, snoop1130 said:

Honda and Toyota, which have historically utilised Thailand as an ICE production hub. However, concerns are brewing that this tax strategy might inadvertently hinder the country’s EV ambitions.

Keep the ICE models and production, and welcome any EV manufactures, give the customer a choice and you have a win-win situation.

[Classic Ray]

I am more concerned about the infrastructure to support EVs, specifically charging stations (and their maintenance and no doubt increasing cost to use them), training of sufficient technicians to safely and competently maintain EVs, and the cost of replacement parts and labour to keep EVs on the road for the expected 20-40 years of any typical Thai used vehicle.

 

With the appetite for EVs waning in the West, this may spread to Thailand and stocks of unsold EVs will rise. Hybrids are a compromise involving double powertrains needing double maintenance.

[wavodavo]

1 hour ago, Classic Ray said:

I am more concerned about the infrastructure to support EVs, specifically charging stations (and their maintenance and no doubt increasing cost to use them), training of sufficient technicians to safely and competently maintain EVs, and the cost of replacement parts and labour to keep EVs on the road for the expected 20-40 years of any typical Thai used vehicle.

 

With the appetite for EVs waning in the West, this may spread to Thailand and stocks of unsold EVs will rise. Hybrids are a compromise involving double powertrains needing double maintenance.

The question is why do governments have to give subsudies/ tax rebates ???? ? Answer .....  nobody would buy them !!!!

[JonnyF]

If they keep pushing products that people do not want the industry will have big problems.

 

I'll never buy BEV. I'm waiting for Toyota's new Hilux based on the Tacoma. Hopefully with a 3 litre twin turbo Diesel.