Exploring Thailand's Electric Vehicle Ecosystem: Growth, Segments, and Market Players

Thailand's electric vehicle (EV) ecosystem is undergoing rapid development, marked by diverse segments experiencing substantial growth and dynamic market shifts. The positive performance of EV segments in Thailand is expected to shape the future of transportation in the country.

Trends in EV Segments in Thailand

Image Source: YCP White Paper

One of the notable segments is electric two-wheelers (E2W), where electric motorcycles have demonstrated significant expansion despite representing a fraction of the overall motorcycle market. The E2W market witnessed an impressive compound annual growth rate (CAGR) of 150% from 2020 to 2022, with a further 60% increase by September 2023. This growth is propelled by local players who have invested in their production and assembly facilities. Initiatives such as 7-Eleven's adoption of electric scooters for cost savings and environmental benefits have further stimulated market growth.

However, substantial scaling of EV battery production is essential to achieve the ambitious targets outlined in the government's 30@30 EV roadmap. Thailand's government aims to produce 675,000 electric two-wheelers (E2Ws) annually by 2030, necessitating a significant increase in EV battery production. Currently, EV motorcycle batteries in Thailand combine locally manufactured and imported batteries. Major manufacturers like GPX and Thai Yamaha Motor produce batteries, while others import from China. There's a growing interest among brands to expand operations and localize battery production in Thailand, encouraged by government incentives like tax breaks.

Image Source: YCP White Paper

In addition to two-wheelers, Thailand's electric three-wheeler (E3W) market is gaining momentum, especially in the iconic tuk-tuk segment. Initiatives like MuvMi, an all-electric tuk-tuk ride-hailing service, have contributed to a significant 49% increase in electric 3W adoption from 2022 to September 2023. Collaborations between MuvMi and companies like Biz Next Motor Company aim to expand the electric tuk-tuk fleet significantly. However, streamlined registration processes are critical for broader market penetration beyond urban hubs like Bangkok.

Image Source: YCP White Paper

Thailand's electric four-wheeler (E4W) passenger vehicle market is also experiencing rapid expansion, with a remarkable 400% growth in battery electric vehicle (BEV) passenger car sales as of 9M2023. Thailand also has seen a surge in registered 4W EVs, with nearly 49,997 new BEV passenger car sales in 2023, marking a 400% growth in 9 months. Total sales for 2023 are projected to exceed 50,000 units, reflecting the country's positive sentiment towards electric vehicles. Chinese BEV brands dominate this segment, capturing over 70% market share in 2023, driven by robust demand and supportive government policies. Thailand's strategic investments in EV components, particularly batteries, bolster its competitiveness in the global BEV market.

Furthermore, the electric large commercial vehicle segment is witnessing significant growth, encompassing buses and trucks. Electric bus registrations increased by 17%, while electric truck registrations surged by an impressive 920% from 2022 to 9M2023. Thailand EV brands such as Nex and Mine lead this market, supported by government initiatives promoting greener transportation. However, challenges such as payload versus range concerns and the availability of charging infrastructure continue to impede the widespread adoption of electric trucks.

While specific market share figures may vary by segment, Thailand's EV market is experiencing significant growth and diversification, driven by domestic demand and government initiatives promoting sustainable transportation.

Source: https://ycpsolidiance.com/white-paper/electric-vehicle-powerhouse-thailand-sea