Kasikorn Research Center (K-Research) forecasts that electric vehicle (EV) battery assembly and production in Thailand will reach 430,000 units by 2023, placing the country among the many top 4 in Asia, The Bangkok Post reports.
At this level of production, Thailand will account for 3% of world battery production inside five years.
The research house predicts that electric vehicle sales in Thailand, which incorporates the three platforms of hybrid, plug-in hybrid and battery vehicles, will account for 25% of the whole automobile market, equating to 240,000 cars by 2023.
By 2023, Thailand’s electric vehicle population is projected to succeed in 820,000 cars.
“The electric vehicle market is expected to grow significantly from 2019 as many automakers have submitted applications to the Investment Board [BoI] incentives for electric vehicle assembly locations,” K-Research said.
“The application period for the government’s electric vehicle program ended in 2018. This year will see investment flows, one of which will be in the assembly of batteries for electric vehicles.”
The research body said the initial phase of the electrical vehicle program is concentrated on hybrid and plug-in hybrid platforms as some automakers, similar to Toyota, Mercedes-Benz and BMW, localized and rolled out their plans last yr.
Battery electric vehicle assembly lines would require some lead time and can rely upon the wide reach of electrical vehicle charging stations, K-Research says.
“BoI has set framework conditions requiring each applicant to implement the plan within three years of the grant of incentives, i.e. no later than 2021.” – said K-Research.
“For hybrid electric vehicles, local sales may increase significantly from 2019 as the technology has been ready for several years and the government may add several hybrid vehicle segments such as eco-hybrid and mild hybrid for eco-cars.”
Once eco-cars qualify for tax breaks under additional programs, their prices will probably be competitive enough to extend local sales volumes, K-Research says.
Both eco-hybrid and mild-hybrid models will probably be subject to stringent conditions for the event and improvement of battery electric vehicles over a three-year period.
According to K-Research, electric vehicle battery assembly production will turn into crucial as automakers work closely with battery manufacturers to develop electric vehicle batteries with higher capability and performance for the Thai market.
Some automakers, similar to Toyota and Mercedes-Benz, have also applied for battery installation locations together with their electric vehicle plans.
K-Research claims that of the whole battery production projected at 430,000 units in 2023, the domestic market would require 260,000 EV batteries – 240,000 units for original equipment production and 20,000 units for substitute equipment production.
Electric vehicle battery production in Thailand will make Thailand an export hub, with the research house predicting shipment of 170,000 batteries in 2023, accounting for 40% of total production.
K-Research says Japan will probably be the foremost destination for locally assembled electric vehicles within the initial stage because the country’s electric vehicle market is expanding and a few Japanese automakers have chosen Thailand as an export hub.
Other destinations for Thailand’s electric vehicle exports will probably be Oceania, Singapore and Malaysia because they’re populated by high-income individuals who can afford electric vehicles.
“These countries have experience in electric vehicle technology, and their governments are investing in expanding electric vehicle charging stations,” K-Research said.
“China is the next destination for electric vehicle exports from Thailand as the country is the world’s largest electric vehicle market. Some European carmakers are expanding their local plants to ship electric vehicles to China.”
Regarding the availability of electrical vehicles to Europe, K-Research said that cars assembled in Thailand will face aggressive competition as European manufacturers ramp up production of electrical vehicles and Thailand doesn’t have a free trade agreement with the region.
When it involves exporting electric vehicle batteries, Thailand could turn into a world hub serving the Oceania and Southeast Asian markets.
In the past, electric vehicles and essential battery components were produced only in major car-producing countries – China, South Korea, Japan, the US and a few European countries.
K-Research says initial battery production in Thailand is for export, with a give attention to spare parts for electric vehicles sold in Oceania and Southeast Asian countries, particularly hybrid and plug-in hybrid vehicles.
Additionally, Thailand will soon turn into a significant producer of electrical vehicle batteries for Japanese automakers, boosted by the Japan-Thailand Economic Partnership Agreement.
Japanese battery producers will move to Europe under a free trade agreement.
K-Research said once Thailand makes progress in producing electric vehicle batteries, the federal government should speed up its plan to determine a fund to support the electrical vehicle industry.
Source : Mail from Bangkok
