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Autonomous Vehicles: The Future of Transportation

Used Electric Vehicles: Supply and Resale Value

Electric vehicles: An approaching confluence of opportunity and demand

accelerating the transition to clean-energy vehicles not only supports the business sector and helps countries achieve long-term sustainability goals, but also serves as a driving force to create a better world for the future.

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).

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;

Over 2024 to 2026, the ethanol industry will enjoy ongoing expansion and improving business conditions thanks to: (i) growth in the tourism industry and an overall strengthening in economic activity; (ii) an increase in the number of vehicles on Thai roads that are able to run on gasohol; (iii) the rising popularity of e-commerce, (iv) government support for biofuels and for increased use of E20 gasohol; and (v) greater demand for ethanol from other industries

Mass transit services are a relatively stable and solid structure than other services because they are typically in the form of public-private partnerships providing a necessary public utility. Moving forward, income should grow as demand for public transport partly displaces use of private vehicles, a process that will be accelerated by the expansion of integrated rail transport networks. Alongside this, demand will be further lifted by the fading of the COVID-19 pandemic, which is bringing with it recovery in domestic and international tourist markets and in social and economic activity more broadly.

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,

Over 2023 and 2024, the expectation is that the industry will continue to grow, helped further by strengthening demand from downstream industries including auto production (partly due to stronger investment in electric vehicles resulting from government incentives), the production of latex gloves and medical devices, and the construction sector, where plans for an increase in spending on infrastructure will also feed into higher demand for rubber. In addition, government policy that aims to keep prices stable will help to maintain stability across the industry. Nevertheless, the industry will remain exposed to risk arising from greater competition from growers in the CLMV nations, which may be able to rapidly steal market share, and from the tightening of non-tariff barriers (NTBs) to trade.