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12 Jan 2024


The rapid growth of electric vehicles is expected to affect the future production of petrol-powered vehicles and parts (Current Issue No.3448)


        Thailand’s automotive industry has developed with a focus on internal combustion engine (ICE) vehicles over the years. However, the adoption of and government support for the transition to electric vehicles – a disruptive technology – has increasingly led automakers to develop battery electric vehicles (BEVs) and hybrid/plug-in hybrid electric vehicles (HEVs/PHEVs) in the country. In the long term, the shift will inevitably affect the production of petrol-driven cars and related parts.

        Sales of BEVs and HEVs/PHEVs have grown steadily. KResearch anticipates that in 2024 the shares of BEVs and HEVs/PHEVs will surge to 15 percent and 16 percent, respectively, of the Thai automotive market. In particular, the shares of passenger BEVs and HEVs/PHEVs are projected to jump by up to 28 percent and 31 percent, respectively. As for electric pickups, improved sales are expected to be seen this year, despite the issues of technology and cost. Regarding Thailand’s key export markets, many of them are importing BEVs and HEVs/PHEVs in increasing proportions, surpassing the global average of 15 percent of total imports of all vehicle types. Thailand thus has the opportunity to produce greater numbers of BEVs and HEVs/PHEVs for export to these markets. The trend might start with passenger cars catering to domestic demand and subsequently move into pickup trucks, leveraging the country’s strengths as a production base for pickup truck exports to global markets.

        In the long term, BEVs have significant growth potential, which could lead to a decline in the production of petrol-driven cars, including HEVs and PHEVs. It is possible that the share of gas-powered vehicles in the Thai automotive market could drop to 71 percent by 2030, from an estimated 96-percent share in 2024. This would adversely impact the value of parts specific to petrol-powered, which could decrease at an average rate of 2.0 percent per year, from THB 284.7 billion in 2024 to THB 252.06 billion in 2030.