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Thailand ‘still 8 years from EV era’
Various Japanese organisations expect electric vehicles (EVs) to be commercially available in Thailand by 2025 when all of the required infrastructure, facilities and technology has been put in place.
Satoshi Nishino, director of the automotive bureau at Japan’s Ministry of Economy, Trade and Industry, said Thailand is developing the technology and infrastructure to support the full implementation of EVs soon.
It is expected to be ready for commercial use by 2025, he said.
“Thailand will remain the Detroit of Asia, as it is now investing a lot in infrastructure to support EVs,” Mr Nishino said.
As part of Thailand 4.0, the government has launched a policy initiative to use new technologies to drive the economy forward. EVs rank among 10 targeted industries the government has vowed to support.
They comprise: next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemical; digital; and medical services.
Government support and the surging interest in EVs has encouraged Thai investors, particularly SET-listed energy companies, to start investing in related technologies like lithium mining, power storage industries and charging stations.
“All those investments are expected to pay off by 2025 when Thais will see EVs launched commercially to compete with other cars in the market,” he said.
Mr Nishino said Thailand should issue another measure on the demand side to support buyers who want an electric car and make the process easier to jump-start demand and, by extension, production.
“We appreciate the BoI’s [Board of Investment] incentives for EVs,” he said. “But if there were an excise tax or subsidy on the buyers’ side it would be another positive in boosting production of EVs.”
He cited Japan, which grants an excise tax cut of 5% on EVs as well as a 10% subsidy for buyers.
Japan is ready to support Thailand in promoting its EV push and the auto industry, said Hiroki Mitsumata, president of the Japan External Trade Organization Bangkok.
Japanese investment accounts for about 90% of the Thai auto market.
However, Thailand will need a long time to develop its EV infrastructure and win over consumers who are leery of electric cars, said Siriruj Chulakaratana, director-general of the Office of Industrial Economics at the Industry Ministry.
“It will take time for the Thai public to recognise and acknowledge EVs and the related technology as we are not very familiar with them,” he said.
Media reports said earlier this year luxury brands including Mercedes and BMW were planning to set up charging stations at shopping malls and residential condos to promote plug-in hybrid sales.
“If car manufacturers do not act now regarding EVs, they will be left behind,” Thai politician Somkid Jatusripitak warned in March.
Source: http://www.bangkokpost.com/business/news/1315339/thailand-still-8-years-from-ev-era