Bangkok: Automakers are rallying behind the government's proposal to shift incentives from manufacturers to buyers, aiming to enhance purchasing power.
According to Thai News Agency, industry leaders recommend that the incentives cover all vehicle types, not just electric vehicles (EVs), due to the current state of the Thai car market, which has not fully transitioned to 100% EVs.
Mr. Vallop Chalermwongsawech, Managing Director of Hyundai Mobility (Thailand) Co., Ltd., emphasized this perspective following the launch of Thailand's first locally assembled EV, the 2026 IONIQ 5 N Line. He projected that by 2026, the EV market share in Thailand will expand by approximately 30%, driven by rising oil prices from the ongoing oil crisis, which has piqued consumer interest in EVs. However, he noted that various factors still hinder the complete conversion to EVs, as these vehicles may not satisfy all consumer needs. Consequently, it is essential to continue supporting other vehicle types, such as hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), and diesel engines.
The EV 3.5 incentive program, which is set to expire in 2024, is recognized as a beneficial measure for stimulating investment in Thailand. However, it is important to acknowledge that its subsidy is lower than that of the EV 3.0 program, at only 50,000 baht per vehicle. While this amount is insufficient for car companies to achieve substantial financial gains, it is still preferable to having no subsidy at all. Mr. Vallop urged the government to further stimulate the economy through consumer incentives, enabling the purchase of a broader range of vehicles, including EVs, PHEVs, HEVs, and diesel-engine vehicles, to meet diverse consumer demands.
Mr. Vallop further stated that the government should conduct thorough studies to understand consumer preferences, such as loan approval criteria, interest rates, and down payment requirements. He emphasized that the measures implemented must effectively address consumer needs to be most successful.
Hyundai's recent launch of the 2026 IONIQ 5 N Line, the first EV assembled in Thailand, features advanced technology and specifications, supporting Thailand's emerging role as a global EV hub. The model includes an 84 kWh battery with a maximum range of 591 km (NEDC), 800V high-voltage electric charging technology enabling Ultra-Fast Charge within 18 minutes, Hyundai SmartSense 17 systems, and the Bluelink Connected Car, marking a first for Thailand. This strategic move bolsters Hyundai's position in the 100% electric vehicle market and enhances Thailand's status as a crucial EV assembly base within Hyundai's global operations.