Thailand’s car exports in 2023 are set to rise by 1 percent to slightly more than 1 million units, while existing major markets shift to increase BEV imports (Current Issue No.3392)

​        KResearch projects that Thailand’s car exports in 2023 may rise to more than 1 million units, reaching around 1,010,000 units, for slight growth of 1 percent. In particular, the country’s shipments of battery electric vehicles (BEVs) may remain relatively small this year, not more than 0.04 percent of the total volume of its auto exports. Thai car exports to Asia, the Middle East and Africa are expected to expand 4.2 percent. Meanwhile, shipments to Oceania, Europe, and North and South America markets may shrink by 2.5 percent, due to their shifts to more BEV imports – replacing internal-combustion engine cars – and the economic difficulties they are presently facing.

        However, maintaining the growth momentum of car exports will be a challenge going forward. Despite growing demand for BEVs in certain markets, Thailand may not be able to produce BEVs for export until 2025-2026. As a result, the country may lose some market share over the short term. Going forward, focus should be on how Thailand can attract more investment from various carmakers for export-oriented production. Attention must be paid to several factors, including continuity of government policies (especially after the upcoming general election), measures supporting investment in BEV production of key competitors like Indonesia, effective collaboration and management by related parties across the entire ecosystem, and strengthening of trade advantages such as free trade agreements (FTAs) with trading partners. These remain issues that require a close monitoring.