The output of Thai electric vehicles will jump, causing a price war in the bruised market
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Chayut Setboonsarng
Industry experts say that Bangkok-Thailand is caused by the surge in local production of Chinese auto manufacturers for an extended EV price war. Essence
Suroj Sangsnit (EVAT), president of the Thai Electric Vehicle Association (EVAT), said that Thailand's largest electric vehicle market in Southeast Asia is expected to increase by 40 % this year, exceeding 100,000 units, and sales have dropped by 8 %. Reuters.
The expected sales surge are largely due to a national incentive plan that needs to produce 1.5 vehicles for each imported vehicle between 2022 and 2023, so that the company is eligible to obtain tax reduction and exemption-and avoid paying high payments high. Fined fines.
The plan also includes a price subsidy of up to 150,000 baht ($ 4,400), helping to help Southeast Asia's second largest economy becoming the largest electric vehicle market in the region. Last year, new electric vehicles in the region lasted 70,000 new electric vehicles. Between 2022 and 2023, it imported about 84,000 EV.
Analysts said that it may now exacerbate the price competition of bruises in weak markets, because credit conditions have severe credit conditions and surge in family debt.
The Great Wall Motor in January reduced the price of its ORA good cat up to 270,000 baht, while GAC Aion lowered 166,000 baht up and down its Aion Y Plus price. Both are Chinese companies.
Tita PHEKANTH, a senior analyst of the Siam Commercial Bank (SCB) economic intelligence department, said: “The price war will be extended, aggressive and more extensive.”
Thailand is the main automobile production center in Asia, with about three -fifths of local manufacturing vehicles.
Investment committee (BOI), an anchoring incentive plan, changed some rules in December-expanded battery production timetables and provided incentive measures for hybrid power to reduce the concerns of excessive supply and price war.
Boi head Narit Therdsterasukdi told Reuters that EV will also start exporting this year and may relax over supply.
He said: “They are not limited to the right or left -handed drive.”
Kasikornbank's senior researcher Hathaiwal Tungkaterakul said: “Indonesia and other markets have also seen (China) BYD and NETA investment.”