Thailand targets faster EV growth

Thailand’s Board of Investment (BoI) is stepping up efforts to promote the electric vehicle (EV) industry by offering more investment incentive packages aimed at supporting the emerging sector and creating additional EV-related jobs.

BoI secretary general Narit Therdsteerasukdi said EV manufacturers operating in Thailand have so far employed around 9,600 workers. These employees work for EV companies with assembly plants in the country, most of which are Chinese brands such as MG, GWM, BYD, GAC Aion, and Changan.

BoI data show that 85-95% of these workers are Thai nationals, employed in positions ranging from engineering and technical roles to executive-level management.

Among these companies, BYD currently employs the largest workforce, about 5,900 workers, and plans to increase that number to 8,000 by 2026.

Narit said Chinese EV manufacturers are planning to use up to 90% locally produced components. At present, the local content ratio stands between 40% and 60%.

He expressed confidence that Thailand holds strong potential to become a major production base for battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and range-extended electric vehicles (REEVs).

Under its "30@30" policy, Thailand aims for EVs to account for at least 30% of total automobile production by 2030. The national target includes 725,000 zero-emission cars, 675,000 electric motorcycles, and 34,000 electric buses and trucks.

As the traditional automotive sector faces stagnation, EV firms are urging the government to maintain subsidies and waive penalties on manufacturers that have failed to meet production targets mandated by the Thai authorities.

Under the EV3.0 incentive package, participating EV producers have benefited from reduced excise and import taxes, along with other subsidies to support imported EV sales - on the condition that they begin local EV assembly from 2024.

However, many companies have struggled to meet these requirements due to a prolonged slowdown in vehicle sales in the Thai market over the past year.