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1 Mar 2023


Domestic BEV sales set to reach 50,000 units in 2023 (Current Issue No.3384)


       Although the battery electric vehicle (BEV) market is being pressured by several factors, KResearch is of the view that BEV sales in Thailand may grow more than 270 percent YoY to 50,000 units during 2023. As a result, BEV share of the domestic automotive market may increase to at least 5.8 percent or in a range of 865,000-895,000 units. Positive factors seen in the BEV market include demand growth, thanks to the government’s support, and the fact that the semiconductor chip shortage has begun to ease. Moreover, more carmakers have tapped into the Thai BEV market, including those from China amid sagging BEV sales there.
       The contraction in China’s BEV sales has resulted in increased BEV exports to Thailand. KResearch expects that the share of Chinese-made BEVs in the Thai automotive market will increase to 85 percent in 2023, against the 78 percent reported for 2022. Looking ahead, it is expected that competition in the Thai BEV market will increase as many carmakers continue to inroad into Thailand while consumers are now able to get new information about BEVs. Given this, BEV makers that will be successful in Thailand should have a strong brand. They must also invest in after-sales service and have efficient maintenance and spare parts inventory management. Investment made by foreign BEV makers in Thailand will help bolster confidence of prospective BEV buyers towards such matters although such car manufacturers will have to consider many factors. Clarity on these matters will likely be seen in 2023, particularly from car manufacturers participating in related projects of the government.

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