Thailand’s assembly and output of Electric Vehicle (EV) batteries are predicted to reach 430,000 units by 2023, according to Kasikorn Research Center (K-Research). As such, Thailand will be responsible for three percent of global EV battery production by 2023 and will be placed top four in Asia. Moreover, sales of the three types of EVs—hybrids, plug in hybrids and battery EVs in Thailand will account for 25 percent of the total car market.
The research centre said, “The EV market is expected to increase significantly from 2019 as many car manufacturers have applied for the Board of Investment’s (BoI) incentives to localise EV assembly.”
With implementation of the government’s EV scheme to focus on hybrid and plug-in hybrid EVs, investment flow for EV battery assembly will follow. Furthermore, car manufacturers successfully granted the BoI incentives are required to carry out their plans within three years, by 2021. The assembly of battery EV’s depend on the coverage of EV charging stations, while hybrid EVs may extend into eco-hybrid cars. Sales of hybrid EVs will see significant increase since they have already been available. Car manufacturers like Toyota and Mercedes-Benz will be localising battery assembly, which will drive assembly manufacturing for EV batteries.
Thailand will be a hub for EV battery exports. 260,000 units of the 430,000 total battery output by 2023 will be supplied to the domestic market, while 40 percent or 170,000 batteries will be exported. Battery EVs will mainly be delivered to Japan, Oceania, Singapore and Malaysia due to rising income growth and government’s support for EV facilities. Furthermore, with the Japan-Thailand Economic Partnership Agreement, Thailand is set to become the original equipment manufacturer EV battery hub for Japanese car manufacturers.
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