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Thailand’s electric vehicle (EV) industry is expected to continue growing during 2026–2028, with new passenger BEV registrations projected at 125,000 units annually

The EV price war in Thailand began in 2022 due to intensifying market competition, forcing EV manufacturers to cut production costs to maintain profitability.

Used Electric Vehicles: Supply and Resale Value

Revenue from vehicle sales is projected to grow by an average of 3.5-4.5% per year during 2026-2028,

Over 2024 to 2026, the outlook for the domestic EV industry will remain positive thanks to strength on both the demand and supply sides of the market, driven by: (i) the continuation of subsidies for buyers of BEVs, which will help to push new registrations of total passenger BEVs to an annual total of around 190,000 vehicles; (ii) the enforcement of provisions in the EV 3.0 and EV 3.5 measures requiring manufacturers to compensate for imports of EVs with domestically produced vehicles;

Automobile production is projected to expand gradually by 0.5-1.5% per year during 2026-2028, driven by increased manufacturing investment and excise tax reductions for hybrid vehicles (HEVs and MHEVs).

2023 Investment Inducing Growth

Overall, Thailand’s automotive parts production is projected to expand by 1.5–2.5% per year over 2026–2028. This growth is driven mainly by increased manufacturing capacity for electric vehicle (EV)

The auto industry will see continuing growth through the period 2023-2025 thanks to a combination of factors. (i) The recovery in the overall economy and purchasing power with softer inflationary pressure (ii) Although conflicts between the US and China over access to technology will mean that periodic problems with chip shortages will persist through 2023, greater investment in production capacity in the US, Germany, and Japan will translate into increased output, and so in 2024 and 2025, semiconductor supply problems should ease. (iii) Government measures to stimulate demand for battery electric vehicles will continue to support the market. (iv) Government spending on infrastructure development, growth in logistics and online retail,

Automobile production growth is projected to remain flat at around -0.5% to 0.5% annually during 2025–2027