Thailand Targets Production of 525,000 Electric Vehicles by 2027

Thailand's excise department has announced that the country aims to produce between 350,000 and 525,000 electric vehicles (EVs) by 2027. As a regional automaking hub, Thailand is making significant efforts to boost its EV production capabilities in the coming years.

The Board of Investment (BOI) has approved 26 investment projects related to EV manufacturing and assembly from 19 companies, with a total investment value exceeding 80 billion baht. The BOI is committed to supporting the government's policy of making Thailand a manufacturing hub for EVs in the region, with a target of zero-emission vehicles accounting for 30% of total automotive production by 2030.

China-based Chery, the eighth EV maker from China to be approved in Thailand, plans to establish a factory in Rayong province by the end of 2025. The facility will produce both battery EVs and hybrid EVs at an initial rate of 50,000 units per year, with plans to expand production capacity to 80,000 units per year by 2028. Chery intends to use Thailand as a production base to meet domestic demand for right-hand drive EVs and export to other ASEAN countries, Australia, and the Middle East.

Why this matters: Thailand's ambitious EV production targets reflect the country's commitment to transitioning towards cleaner transportation and establishing itself as a key player in the global EV market. The government's supportive policies and incentives are attracting significant investments from both domestic and international automakers, positioning Thailand as a major EV manufacturing hub in Southeast Asia.

The Thai government has introduced various incentives, such as subsidies and lower import taxes, to boost EV adoption. These measures have attracted Chinese EV manufacturers like BYD and Great Wall Motor to set up facilities in Thailand. The Electric Vehicle Association of Thailand forecasts that EVs will make up 20% of all vehicle registrations in the country this year, highlighting the growing demand for electric vehicles in the Thai market.

Key Takeaways

• Thailand aims to produce 350,000-525,000 EVs by 2027, up from 30% of total production by 2030.
• The BOI has approved 26 EV manufacturing projects worth over 80 billion baht from 19 companies.
• China's Chery plans to establish a factory in Rayong by 2025 to produce 50,000 EVs/year, expanding to 80,000 by 2028.
• Thailand offers subsidies and lower import taxes to boost EV adoption, which is forecast at 20% of registrations in 2023.
• Thailand positions itself as a key EV manufacturing hub in Southeast Asia to meet domestic and regional demand.