Economy Thailand's EV Sales Surge Amidst Industry Challenges and Price Wars

[snoop1130]

Picture courtesy of CHUTTERSNAP, Unsplash

 

The electric vehicle (EV) market in Thailand is witnessing transformative shifts, highlighted by a notable 46% rise in battery EV (BEV) sales from January to April this year. Despite this impressive growth, the industry faces formidable challenges impeding a seamless trajectory, including fierce competition and a downturn in the broader automotive sector.

 

According to the Automotive Industry Club of the Federation of Thai Industries (FTI), BEV sales in the passenger car category surged to 33,633 units. This contrasts with a 13% decline in internal combustion engine (ICE) vehicle sales, which fell to 48,784 units. Meanwhile, plug-in hybrid EV (PHEV) sales soared by 409% to 3,543 units, whereas hybrid EV (HEV) sales saw an 11% dip to 41,228 units. Despite fluctuations, HEVs maintained dominance with a commanding 20% market share.

 

Significant challenges arise from the intensifying competition among EV manufacturers. Notably, a heated price war, led by companies such as BYD, has added pressure in the market. Hozon Auto, the parent company of Neta Auto Thailand, is dealing with financial strains, while Great Wall Motor (GWM) is recalibrating its production focus toward diesel vehicles in response to market demands.

 

Economic factors, including consumers' concerns over high maintenance costs and insurance premiums, coupled with weakened purchasing power, are further adding to the industry's complexities. Kriengkrai Thiennukul, chairman of the FTI, emphasizes that the sluggish economic conditions have prompted a strategic price war among Chinese EV manufacturers to galvanize sales. BYD has notably slashed prices on 22 models, including the affordably priced Seagull EV at about 255,000 baht (US$7,790), undercutting even some motorcycles.

 

Amidst these strategic adjustments, Sun Baolong of Hozon Auto speculates that the price war may conclude next year, warning that such tactics affect not only profit margins but also brand reputation and customer trust. Concurrently, Narong Sritalayon of Thonburi Neustern Co points out the hurdles facing potential buyers, who find it challenging to secure auto loans due to stringent lending standards exacerbated by high household debt levels.

 

GWM (Thailand) is responding by diversifying its production strategy, focusing on both diesel and EVs to align with broadening consumer demands. The company's plan involves further investments in EV manufacturing, while sustaining multi-powertrain options to serve diverse market needs.

 

Government incentives are also evolving, with the Thai government modifying tax benefits to encourage PHEVs with extended ranges. Deputy Finance Minister Paopoom Rojanasakul has highlighted efforts to foster automotive sector investments as Thailand transitions toward next-generation vehicles.

 

Neta Auto Thailand is actively restructuring to address its financial challenges, assuring its customer base of continued service. Meanwhile, insurers like AXA Insurance Thailand and Allianz Ayudhya General Insurance, represented by Guillaume Mirabaud and Lars Heibutzki, respectively, express concerns about the broader implications for customer confidence and insurance coverage stemming from Neta's fiscal troubles.

 

While last year's motor insurance market grappled with fewer new vehicle registrations, the persisting price war among Chinese automakers is anticipated to rekindle sales momentum this year. Nevertheless, the profitability of EV insurance remains slim due to elevated parts costs, prompting AXA Thailand to advocate for bespoke EV insurance solutions to better meet industry needs and bolster confidence.

 

  Adapted by ASEAN Now from The Thaiger 2025-06-09

 

 

[Enoon]

 

 

[whiteman]

get ready for more car fires

[1tent42]

25 minutes ago, whiteman said:

get ready for more car fires

 

ICE cars are four to five  times more likely to catch fire than electric vehicles.

 

https://gmauthority.com/blog/2023/11/ev-fires-less-likely-than-ice-vehicle-fires-research-finds/

[brewsterbudgen]

How much higher are insurance premiums for EVs or hybrids?

[KhunLA]

2 hours ago, brewsterbudgen said:

How much higher are insurance premiums for EVs or hybrids?

Depends what broker or company you use.  My BEV insurance last year and now is cheaper than the same car, ICE version, the prior year.  Go figure, though I did change insurance companies.  

 

Been quoted silly prices ฿22+k, and have now at ฿13.4k.  Year previous it was even cheaper, 9+K, but they changed the way they value the car vs repair cost, plus I had an oops.   Actually, just comes down to price gouging, because they can.   Unless the battery pack is compromised, it doesn't cost any more to repair a BEV.   Still the cheapest around, and excellent claim service.

[quake]

Make it  a two for one deal, and I'm in.

 

[JonnyF]

These Chinese EV's are so cheap now that many people are going to trade in their Honda Wave and buy one. 

 

I would expect the traffic issues in Bangkok to get far worse in the next few years as congestion beating motorbikes are traded for these tin cans with a battery pack. 

 

Not to mention queues at the charging stations. Parking at the shopping malls. Wear and tear on the roads. Increased rubber consumption as two skinny wheels are traded for 4 big ones under a tonne of lithium.

 

Just what Asia needs, more cars on the roads. 

 

I certainly wouldn't want to be in a crash in one of these 255,000 Baht sardine cans either.