According to Reuters, a group of major Thai automakers comprising Chinese and Japanese majors has asked the government to extend the production deadline set by incentives to meet planned electric vehicle production targets as sales of electric vehicles in the Thai market have fallen short of expectations.
Previously, the Thai government’s EV incentives successfully attracted Chinese EV makers such as BYD and Great Wall Motors to invest more than $1.44 billion in Thailand to build production facilities, making the country a production center for EVs in Southeast Asia.
But with EV sales slowing (in part because Thai banks have tightened auto loan requirements), the Electric Vehicle Association of Thailand (EVAT) is asking the government for more time to meet EV production targets under a major incentive program to support the auto industry. The move is part of broader measures taken by Thailand’s electric vehicle industry in response to lower-than-expected sales.
Suraj Sangsnit, chairman of the Electric Vehicle Association of Thailand and executive vice president of SAIC Zhengda, a joint venture between SAIC and Thailand’s Zhengda Group, said attempts are being made to negotiate with the Thai government to extend the production deadline slightly.
Under the Thai government’s EV 3.0 program, companies that receive tax breaks and other support for EVs must produce the same number of EVs in Thailand this year as they import between 2022 and 2023. If they miss this deadline, their task will be even more difficult next year as they will need to produce 1.5 EVs for every EV imported next year to offset it, according to the program.
Suraj Sangsnit said large Chinese companies actively pushing Thailand’s auto industry to transition to electric vehicles include BYD, SAIC’s MG Motor and Great Wall Motor.
BYD and Great Wall Motor have not yet responded to Reuters’ request for comment on the report. Narit Therdsteerasukdi, secretary-general of the Board of Investment of Thailand (BOI), which is in charge of the EV incentive program, declined to comment until he receives guidance from the cabinet of incoming Thai Prime Minister Paetongtarn Shinawatra.