Thailand has implemented the 30@30 policy to seek at least 30% of the cars made to be EVs by 2030.
Thailand is the largest production base for Japanese automakers in Southeast Asia. Japanese cars also account for the highest market share in the country. The situation will benefit BYD and other China-based EV makers but challenge Japanese automakers.
Vehicles manufactured in Japan, South Korea, and China have enjoyed advantages in delivery charges due to their proximity to Thailand. Trade agreements are also influential in vehicle prices.
Japan-based EV Times reported that an EV exported from the US and Europe to Thailand has to bear a tariff rate of 80%. South Korea-exported EVs hold a rate of 40%, while those from Japan hold 20%. China-made EVs can enjoy zero tariffs in Thailand. The situation explains why European and US EVs cannot gain traction in the Southeast Asian country, but affordable Chinese EVs will have much potential.
The latest Thai automotive market data showed that about 13,400 battery EVs were registered in January, taking up 17.2% of the monthly car registration. BYD accounted for almost 60% of the BEV registration, with two vehicles becoming the top-selling cars. US-based Tesla only saw the registration of its Model 3 at 15 units in January.
Thailand plans to foster locally-made BEVs. Although it subsidizes exported EVs significantly, the government requires companies to produce a specific number of EVs later in Thailand. Carmakers that do not meet the requirement will be fined 1.5 times their subsidies or face a higher requirement for local EV production. The Thai government will adjust its subsidy program and fine annually.
According to EV Times, the Thai government subsidized each EV THB70,000 to THB150,000 (US$2,000 to US$4,200) in 2023. Automakers must produce the same number of BEVs they imported in 2023 this year, or they will be fined. The subsidy for 2024 has been reduced to between THB20,000 and THB100,000.
To receive the incentive, carmakers must manufacture twice the BEVs they imported this year for 2026, or three times what they imported this year for 2027. The subsidy program is why China-based carmakers have set up BEV production lines in Thailand since 2023. The move will help them avoid fines and expand overseas.
Due to infrastructure, selling system, and other factors, Thailand still sees 80% of internal combustion engine vehicles in new car registration. However, BYD's top-selling BEV, Dolphin, became the sixth most-registered-new car in December 2023. The top five vehicles were all Japanese ICE cars.
Article translated by Peng Chen
