Thailand's EV Market Set for a 40% Surge Amidst Price Wars

Thailand is poised for a significant increase in electric vehicle sales, predicted to rise 40% in 2025. This growth, driven by national incentives, faces challenges from potential price wars due to an oversupply from Chinese manufacturers. The domestic auto sector struggles with declining sales, tight credit, and household debt.

Thailand's electric vehicle (EV) market is on the verge of significant growth, with sales expected to rise by 40% in 2025 according to industry experts. This surge will bring sales to over 100,000 units, marking a recovery from an 8% decrease last year.

The increase is largely attributed to a national incentive program that provides tax breaks for companies that meet local production targets. However, this strategy also threatens to exacerbate a price war in a market already struggling with declining auto sales due to tight credit and rising household debt.

Industry analysts warn that the price competition will be aggressive. Companies like Great Wall Motor and GAC AION have significantly reduced their prices this year, intensifying the battle in a market dominated by Chinese investments. Despite the tough conditions, Thailand strives to convert 30% of its annual production to EVs by 2030.

(With inputs from agencies.)