Presently, competition in the domestic car market, particularly the BEV market, has changed significantly. Thailand has undertaken greater efforts of investment to retain its domestic automotive industry by providing extensive support from this year through to 2025. As a result, BEV manufacturers, including Chinese carmakers and local auto manufacturers under partnership with Chinese car brands, have taken actions to seize an initial share of the BEV market. At the same time, Western carmakers are also preparing to penetrate the market. Meanwhile, Japanese carmakers, an existing market leader, continue to focus on sales volume of hybrid cars sought after by most car buyers, who remain concerned about adoption of full BEVs. These carmakers will consider an appropriate time to enter the BEV market in the future.

KResearch views that due to this difference in strategy, in the short term BEV market share could be dominated by the players who move first in offering BEVs, such as Chinese carmakers or Thai-Chinese joint ventures. Over the long term, however, the market share may shift as the BEV market remains quite new in Thailand and many other countries worldwide while BEV technology continues to develop rapidly. Additionally, Thai car buyers consider several factors before making a purchase such as after-sales service, auto parts supplies, prices in the second-hand car market, etc. In the long term, car manufacturers which can better tackle these issues will have a chance to enjoy a larger share of this market. In the initial stage, BEVs could be commonly found in the long-term leased car market after organizations embrace carbon neutral policies.

Source: Kasikorn Research Center