Tokyo, Japan Apr 26, 2021 (Issuewire.com) - Thailand has announced plans to only sell zero-emission vehicles in the country from 2035. This move is in line with the country's goal of transforming itself into the Southeast Asian hub for making electric cars. The pursuit by the Southeast Asian nation to accelerate the adoption of electric vehicles will undoubtedly help the growth of the global EV market as the world move towards cleaner transportation solutions.
"We can see the world is heading in that direction so we have to move quickly," Kawin Thangsupanich, an adviser to Energy Ministry's national policy committee, said in an interview. "We want to capture that growth post-pandemic, and we have the ambition to be the production center because we already have the existing supply chains."
The global automotive market has continued to grow over the years, and the industry is one of the most important sectors in Thailand, contributing about 10% of the country's GDP and employing 850,000 workers. The sector also supports several industries, including iron and steel, petrochemicals, and plastic. The automotive industry is also a major export of the country, with about 50% of the cars made in Thailand exported to countries including the Philippines, Indonesia, and Malaysia.
The feats achieved by the industry have most likely inspired the decision to embrace EV as the country sets a target to have electric vehicles account for 50% of all new car registrations by the end of the decade, an increase from the previously set 30%. Thailand also wants every new car sold in the country to be electric from 2035.
"Now that the country has set a target date for phasing out combustion-engine cars, the next step for the government will be to facilitate that transition, by offering tax incentives, building out the appropriate infrastructure, and developing regulations that promote EV manufacturing," Kawin said. "Consumers also need to be incentivized to buy such cars," he added.
"If we let the EV adoption happen naturally, it could take too long," said Yossapong Laoonual, honorary chairman of the Electric Vehicle Association of Thailand. "As a producer, setting a clear target makes the country more attractive for investment."
Battery electric vehicles currently make up less than 1% of vehicles in Thailand, according to data from the Electric Vehicle Association of Thailand show. While the Thai EV market is relatively small, it showed "great resilience" last year even as the pandemic dented overall auto sales, according to BloombergNEF analyst Allen Tom Abraham, with EV car sales increasing 1.4% in 2020, while regular auto sales slumped 26%.
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