Thailand is being urged to step up proactive measures to promote the electric vehicle (EV) industry, focusing on stimulating the domestic market by encouraging the use of electric cars, at the same time promoting the export of EVs and related components.
Manufacturers have to align themselves with laws and regulations and closely follow trade measures, as well as engage in networking activities with importers, according to Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office.
Additionally, the country needs to accelerate the development of infrastructure for the production and use of EVs, through the establishment of charging stations, and by supporting manufacturers of EVs and EV components, promoting the establishment of EV production plants and fostering research and technological development.
Furthermore, there is a need to develop the workforce by fostering cooperation between the public and private sectors, as well as educational institutions, to enhance research and development efforts, said Mr Poonpong.
"The office's latest study has found the EV market in various countries has been continuously growing due to increased support for the production and use of electric cars worldwide. This trend aligns with the goals set by the Paris Agreement, under which every country aims to limit the global average temperature increase by reducing carbon dioxide emissions and supporting various mechanisms to mitigate the impacts of climate change and address greenhouse gas issues," he said.
In China, for instance, there is a five-year plan for the development of the EV industry, which includes measures such as promoting domestic production of EV batteries and providing subsidies of US$2,300 to $3,200 per vehicle purchase.
These initiatives have led to a sig- nificant increase in electric car sales in China, with numbers rising from 1.06 million units in 2019 to 3 million units in 2021. Between January and November 2022, sales reached 4,730,000 units, accounting for 19% of total new car sales in China.
In the European Union, there is an ongoing push to phase out sales of vehicles powered by internal combustion engines by 2035 to accelerate the adoption of EVs.
This push aims to encourage European car manufacturers to increase the production of EVs. The EU is also preparing to enact legislation that sets standards for EV charging points across member states.
EV sales in Europe have been steadily increasing, with a 61% annual growth rate from 2016 to 2021. In 2021, sales reached 2.3 million units, marking a growth of over 65% from the year before.
In the US, the Inflation Reduction Act was passed to promote clean energy investment and provide financial incentives. This act encourages businesses to reduce or eliminate the use of fossil fuels.
It also offers tax credits to support the development of wind, solar, and nuclear energy and provides cash back for EV buyers and establishes strict requirements for sourcing materials.
As a result, electric car sales in the US for the first nine months of 2022 reached 530,577 units, showing an increasing trend compared to the previous year's sales of 470,000 units.
In Thailand, thanks to the EV support plan under the "30@30" policy, which aims for the country to have EVs account for 30% of its total auto output by 2030, EV production reached 92,746 units in 2022, representing a 34.9% rise over the previous year.
Domestic sales of EVs in 2022 stood at 72,158 units, an 86.5% increase from the previous year.
In terms of exports, EV shipments between 2017 and 2022 had an average annual growth rate of 6.33%. The total export value was estimated at $497 million.
