Courtesy of good policies, 3 new Chinese EV companies now looking to enter Thailand

On the back of its comprehensive and lucrative National EV Policy, Chinese EV vehicle manufacturers and suppliers are increasingly becoming interested to set up shop in Thailand.

Government spokesman, Anucha Burapachaisri told Bangkok Post, at least three China-based global companies are currently looking to invest in Thailand.

Also read: Full speed ahead for Thailand’s National EV Policy Committee, 750k xEVs by 2030

Contemporary Amperex Technology Co Ltd (CATL), the world's largest EV battery supplier, SVOLT, a sister company of Great Wall Motors (GWM); and BYD are reportedly in talks with the Thai Government about potential investments to drive Thailand’s fledgling EV industry forward.

According to Mr Anucha, the Thai Prime Minister, Prayut Chan-o-cha intends to see Thailand become an ASEAN hub for EV production. Thailand plans to do this via the current investment promotion initiatives, and more policies (yet detailed) to lure more global EV companies to the land of smiles.

Also read: Thailand to ban sale of combustion engines by 2035, aiming to be EV manufacturing hub

Currently, the Thai Government offers an exemption of import duties on significant electrical parts (between 2022 and 2025) – including batteries, traction motors, compressors for battery EVs, battery management systems, drive control units and reduction gear systems.

More recently, the Government also lowered the excise tax on EV batteries from 8 percent to just 1 percent. BMW, Mercedes-Benz and Toyota are among other major manufacturers that are already producing xEV batteries for the Thailand market.

Also read: Thailand to cut excise tax on locally produced EV batteries to just 1 percent

According to TTB Analytics, the research centre for TMBThanachart Bank, EV sales are predicted to jump to 292,000 in 2024 and keep expanding 28.8 percent on average every year in Thailand until 2030.

By 2030, the Thai Government aims to produce 750,000 electrified vehicles (xEVs), or 30 percent of Thailand's annual car output of 2.5 million vehicles.