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In the next five years, Thailand expects to see all EV and EV-related investments amounting to more than 200 billion THB (US$5.5 billion).
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May Wong
BANGKOK: The electric vehicle (EV) manufacturing industry may have slowed down in some parts of the world like the United States, but not in Thailand.
Thailand remains unfazed in its ambitions to become Southeast Asia’s EV manufacturing hub. The Board of Investment (BOI), which promotes foreign investment in Thailand, has approved at least 24 projects by car makers to produce electric vehicles of all types such as battery electric vehicles and hybrid electric vehicles in the country.
These manufacturers will produce more than half a million EV units per year.
In the next five years, the BOI expects to see all EV and EV-related investments amounting to more than 200 billion THB (US$5.5 billion).
PUSH TO BECOME MANUFACTURING HUB
The nation has been trying to accelerate its goal of becoming the region’s manufacturing hub for electric vehicles since the new government led by Prime Minister Srettha Thavisin came into power last September.
To make the industry more attractive, Thailand significantly reduced excise tax from 8 per cent to just 2 per cent for electric cars. EV manufacturers can also enjoy up to 40 per cent cuts on import duties for completely built-up units.
The improved tax reliefs apply to cars worth up to 2 million THB.
The country is also aiming to attract EV battery and charging station operators to base their plants in the country.
“Thailand is the first country in the region to announce comprehensive measures and aggressive measures to promote the EV industry. And apart from the vehicle production, we also focus on the key parts manufacturing in Thailand, said secretary-general of Thailand’s Office of the BOI Narit Therdsteerasukdi.
President of the Electric Vehicle Association of Thailand Krisda Utamote is optimistic about the country’s focus on the sector.
He noted that there has been “good growth” in the sector in the past years. Mr Krisda is convinced that if Thailand “move(s) in this pace, we should be able to secure our base as a production hub for EV in ASEAN".
The automotive manufacturing sector contributes about 10 per cent to Thailand’s GDP and employs more than 850,000 people.
INCREASING THE NUMBER OF ZERO-EMISSION VEHICLES
Thailand has a goal of ensuring that 30 per cent of all vehicles made in the country - equivalent to 725,000 cars and 675,000 motorbikes - will be zero-emission vehicles by 2030.
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One move that has helped Thailand’s push is attracting one of the world’s biggest EV players, China’s BYD, to set up its first plant in the country.
The facility, which opened early July, can manufacture 150,000 EV units annually.
Speaking at the opening of the Thai factory, BYD’s chairman and president, Wang Chuanfu said the Rayong plant can generate 10,000 jobs when fully operational.
He said he has high hopes for the potential of more BYD electric vehicles being manufactured in the Thai facility as he has already set his sights on launching “more pure electric models in Thailand and also introduce plug-in hybrid models to achieve localised production.”
Mr Wang added that BYD will bring “new energy technologies to Thailand, promoting the transformation and upgrading of new energy vehicles in Thailand”.
BYD Auto Thailand general manager Benson Ke said that while the company did consider other countries in the region, it chose the Kingdom eventually based on its advantages, including good relations between the two countries.
“Thailand offers stability despite the existence of political opposition parties, so our investments are considered safe and can be trusted.
"So our confidence extends beyond Thailand and into the entire region and globally for the prospects of the EV industry,” he said.
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FIRMS HOPE FOR SPILLOVER EFFECT
With big EV players like BYD and Great Wall Motor locating their manufacturing plants in Thailand, some local firms like Thai Metal Aluminium are hoping there will be spill-over business opportunities for them.
The 40-year-old company produces components using aluminum for various uses like door frames and parts of the vehicle suspension system.
But soon, it will be churning out products required in EVs such as trays to hold batteries.
The firm’s managing director Supat Ratanasirivilai said he wants to convert more of his business operations in anticipation of increased demands from new or expanded EV manufacturing in Thailand and globally.
He said that given that all EV makers would have their own supply chains from abroad, the challenge is for local companies to make sure they get involved.
Mr Supat said that ultimately, the onus is on local companies to make themselves relevant to the EVindustry.
“By participating in supplying parts for EV, we grow our technology in a way, we grow our capability. And in manufacturing it’s very important that you keep making new parts so that you pick up on new skills, you generate new developments,” he said.
CHANGING THE THAI MINDSET
Aside from enticing investors to expand EV manufacturing in Thailand, the government also wants to encourage its own citizens to convert to green vehicles.
One major incentive announced last November is that those buying electric cars, pick-up trucks or e-motorbikes will receive government subsidies. Depending on the vehicle type and battery capacity, consumers can enjoy subsidies from between 20,000 THB and 100,000 THB per unit.
Such incentives may be what some motorists need to make the switch.
Thai marketing executive Manon Sirianan who recently converted from a regular gas-powered vehicle to an electric one, said he projected savings in the long term.
The subsidy convinced him to buy an EV, he added. He is reaping the rewards of saving on gas, spending about a third of what he used to.
Thai firms are also doing their part to reduce noise and pollution brought about by the traffic congestion in the country.
Homegrown brand HSEM Motor used to make electric golf carts but started producing electric bikes about four years ago.
Its CEO Wanchai Leenawatthana saw an opportunity for e-motorbikes to cater to the needs of citizens and some corporations operating food delivery and ride app services.
He noted that cost of living is a big issue for those living in Bangkok.
Currently, riders have to pay 300 to 500 THB to get gas. However, if they switch to e-motorbikes, this will be reduced to less than 100 THB, he said.
“Using e-bikes will help reduce the household expenses so people can have more savings,” he said.
Source: CNA/ja
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