Thailand Charges Ahead with 40% EV Sales Surge Amid Price War

Thailand's electric vehicle sales are forecast to surge by 40% in 2025, driven by a national incentive programme focused on local production. However, this rise may exacerbate an ongoing price war, as new supply and tight demand pressure pricing in Southeast Asia's largest EV market.

Thailand is on track for a significant leap in electric vehicle (EV) sales, expected to rise by 40% in 2025, surpassing 100,000 units. This surge, primarily fueled by a national incentive programme requiring local production, aims to counter last year's 8% sales decline, according to Suroj Sangsnit, the president of the Electric Vehicle Association of Thailand.

The programme offers tax breaks and price subsidies up to 150,000 baht, making Southeast Asia's second-largest economy the leading EV market in the region. However, analysts warn that this could trigger a pronounced price war in an already weak market grappling with credit constraints and household debt.

Chinese carmakers like Great Wall Motor and GAC AION have slashed prices to compete, intensifying concerns about oversupply. The Thai auto industry, primarily export-oriented, is adjusting to these changes, with the Board of Investment extending deadlines and incentives to alleviate market tensions.

(With inputs from agencies.)