Thailand embraces electric vehicle 'golden age'
2024-08-13
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【Opportunities from the East】
Chinese car companies support
Thailand embraces electric vehicle 'golden age'
Wang Sicheng, a reporter of Guangming Daily in Bangkok
As the world's tenth largest automobile producer, Thailand has a long history of automobile manufacturing. The long-term efforts of many foreign-funded enterprises have driven the development of Thailand's automobile manufacturing industry, making Thailand the automobile manufacturing center of Southeast Asia.
However, as countries pay more and more attention to environmental protection and sustainable development, the global automotive industry is undergoing a profound transformation. Thailand has seized this opportunity, made early plans and made great efforts to support the new energy vehicle industry. In 2016, it proposed the "Electric Vehicle Strategy" to promote the production and use of electric vehicles.
On July 4, BYD's Thailand factory was officially completed and put into production. The picture shows BYD's 8 millionth new energy vehicle unveiled at the ceremony at BYD's Thailand factory in Rayong Province, Thailand. Photo by Xinhua News Agency reporter Sun Weitong
With the change of Thailand's policy environment, a number of Chinese new energy vehicle companies have turned their attention to Thailand. They not only export new energy vehicles to Thailand, but also step up investment and establishment of factories locally, implement a strategy of accelerating entry into Thailand and radiating the Southeast Asian market, and help Thailand become the most active electric vehicle market and electric vehicle manufacturing center in Southeast Asia.
The Thai government vigorously supports the new energy vehicle industry
As Thailand's fourth largest pillar industry, the automotive industry accounts for 11% of its GDP and has a workforce of over 750,000. In order to reduce greenhouse gas emissions, promote green transformation and sustainable development, the Thai government has assessed the situation, formulated clear development goals, and vigorously promoted the development of new energy vehicles. According to the Thai government's plan, by 2030, new energy vehicles will account for 30% of Thailand's auto sales.
The Thai government has introduced a series of incentives, including exemptions from import taxes and consumption taxes on new energy vehicles. The government also plans to build more charging stations across the country to improve the supporting infrastructure for new energy vehicles. In addition, the Thai government has formulated a national new energy vehicle plan to support local automakers in developing new energy vehicles and related technologies, and has also cooperated with Thai companies to develop battery technology. In the field of public transportation, the Thai government attaches great importance to the development of new energy taxis and buses.
With policy support, more and more Thai consumers are willing to buy new energy vehicles. In 2023, new energy vehicle sales in Thailand accounted for about 9% of its total domestic vehicle sales, and it is expected that by the end of this year, new energy vehicle sales will double on this basis. Al Haub, who works in Bangkok, told reporters that he is considering buying a new energy vehicle. The fuel consumption of the fuel car he drives currently costs 4,000 to 5,000 baht (about 813 to 1,017 yuan) per month. After replacing the new energy vehicle, it is expected to reduce the expenditure by 70%.
Today, new energy vehicles have become a bright spot in the weak background of Thailand's automobile industry. From January to May this year, the total sales volume of automobiles in Thailand fell by 23.8%, but the new registration volume of new energy vehicles increased by 31.64% compared with the same period last year.
Chinese new energy vehicles have become the first choice for Thai consumers
Japanese cars once dominated the Thai auto market, but with the booming development of new energy vehicles, the Thai auto market is gradually leaning towards Chinese brands. Thai consumers first consider cost-effectiveness. Chinese new energy vehicles not only have a trendy appearance and operating system, but also have a high cost-effectiveness. According to statistics, in 2023, the market share of Chinese brand cars in the Thai auto market will increase from about 5% to about 11%, and the market share in the Thai new energy vehicle market will be as high as 80%.
Among them, BYD has won the sales champion of pure electric vehicles in Thailand for 18 months since January 2023. Today, one out of every three pure electric vehicles sold in Thailand is from BYD, and its market share has reached 41% of Thailand's new energy vehicle market. In July, BYD completed the construction of Southeast Asia's first new energy vehicle factory in Thailand, with an annual production capacity of 150,000 vehicles. BYD Chairman Wang Chuanfu said: "At present, the penetration rate of new energy vehicles in Thailand has reached 12%, and it will usher in a leapfrog development. Thailand's new energy industry will usher in a golden period of development. BYD plans to introduce plug-in hybrid models into the Thai market in the future, further promote localized research and development, enrich product lines, and meet consumer needs."
In addition, a number of Chinese new energy vehicle companies such as Great Wall, SAIC, GAC Aion, and Nezha are also actively developing the Thai market. According to statistics, seven Chinese new energy vehicle manufacturers have set up automobile assembly plants in Thailand, with a total investment of nearly 70 billion baht. In July, GAC Aion Thailand Smart Factory, the first production base of GAC Group in ASEAN, was completed and put into use.
In addition to vehicle manufacturing, Chinese companies have also made arrangements for the production of core parts for new energy vehicles in Thailand. Battery production is one of the core technologies of new energy vehicles, and companies such as CATL have begun to seek investment in building battery factories in Thailand. In response, Thailand's Vertex Group, a major parts manufacturer in Thailand, said that Chinese new energy vehicle companies are entering Thailand in large numbers, and Thai auto parts manufacturers must accelerate production efficiency to supply China's new energy vehicle assembly plants in Thailand. Chinese auto companies assemble and produce electric vehicles in Thailand, which is expected to increase Thailand's auto production to 3 million vehicles per year by 2030.
Lin Chuqin, Chairman of the Chinese Chamber of Commerce in Thailand, said that Chinese new energy vehicles have become the first choice of Thai consumers, occupying the vast majority of the market share of new energy vehicles in Thailand. The cooperation between Thailand and China in the field of new energy vehicles has provided new impetus for the development of new quality productivity and industrial chain cooperation between the two countries.
As the director of the Thai-Chinese "Belt and Road" Research Center, Wei Lun, said, the high-quality cooperation between the Chinese and Thai new energy vehicle industries is a proof that Chinese-style modernization benefits the global South. In recent years, the joint construction of the "Belt and Road" initiative has been connected with the "Thailand 4.0" development strategy, the Eastern Economic Corridor of Thailand and other development strategies. The integrated development of the Chinese and Thai new energy vehicle industry chains has not only promoted Thailand's economic development and green transformation, but also become a new engine for ASEAN's economic development, providing more ASEAN countries with valuable development opportunities. In this regard, Thai Minister of Industry Pingpala said that the Thai government attaches importance to the development of the new energy vehicle industry and is committed to making Thailand the world's future automotive industry manufacturing center. To this end, the Thai government actively promotes the upgrading and transformation of Thailand's automotive industry, welcomes new quality productivity enterprises such as Chinese new energy vehicles to enter Thailand, and supports the establishment of a Chinese-Thai new energy vehicle industry chain supply chain.
Thai Prime Minister Setia has also repeatedly stressed that the Thai government will provide more convenient infrastructure and government services for the development of new energy vehicles.
(Guangming Daily, Bangkok, August 12)
Guangming Daily (August 13, 2024, 16th edition)
Source: Guangming Daily
