Electric Vehicle (EV) industry is one of the target industries or S-Curve that Thailand wants to drive while maintaining the status of the regional automotive and auto parts production base according to the 20-year national strategy. Electric vehicles to achieve at least 30 percent of the total vehicle production each year, or 750,000 units by 2030.
And one of the tools to help achieve this production goal is an investment promotion measure for the production of electric vehicles for the electric vehicle industry by the Office of the Board of Investment or BOI. Electric vehicles since 2017 and has continuously improved the policy to suit the situation. to cover the entire production chain (Supply Chain)
Update investment promotion strategies from the BOI, direct to Thailand’s electric vehicle industry.
Until now, this promotion has since The assembly of all types of electric vehicles includes battery electric vehicles (BEV), hybrid hybrids (PHEVs) and plug-in hybrids (HEVs), electric motorcycles, electric tricycles, electric buses. electric truck, electric boat
Including most recently, the BOI board meeting on September 6, 2021 has added an electric bicycle business (ELECTRIC BICYCLE or E-BIKE) to be promoted as well. Due to the increasing popularity of traveling by electric bicycles nowadays.
It is estimated that the global electric bicycle market will grow from approximately $24.3 billion in 2021 to USD 42.27 billion.
and it is expected that in 2026 for Thailand with a supporting industry base, it can already support the production of electric bicycles well. And the production of electric bicycles will also increase the size of the domestic battery market. Allows the battery industry for electric vehicles and for electric energy storage in Thailand to grow faster. Therefore, it should be a good opportunity to attract electric bicycle manufacturers who want to find new production bases to Thailand.
In addition, the BOI also promotes Manufacture of parts and equipment for electric vehicles by improving and adding more types of important parts such as High Voltage Harness, Reduction Gear, Battery Cooling System, Regenerative Braking System, etc., as well as providing promotion covering the charging station business, which helps to create an ecosystem that Consumers have easy access to electric vehicles. and have more confidence in using
However, in order for the electric vehicle industry to compete The production must be flexible. The concept of creating a sharing platform that can be used interoperable between different brands and models of electric vehicles.
The BOI therefore improves the production of battery electric vehicles to cover ‘Platform for battery electric vehicles’, which will give start-ups the opportunity to develop electric vehicles as well, in addition to being limited to major carmakers.
by platform value (including battery) up to 74 percent of the value of battery electric vehicles Co-platform manufacturing reduces the amount of raw material required, saving time and money. This creates economies of scale, which will result in lower production costs. The development of new electric vehicles entered the market.
for the platform To receive investment promotion, there must be three key components: Energy Storage System, Charging Module and Front & Rear Axle Module. The BOI places importance on improving investment promotion measures in various fields. continuously To keep up with the rapidly changing global context, especially technological changes and consumer preference towards clean energy vehicles.
The electric vehicle industry needs to adapt to stay competitive and the BOI’s investment incentives will be one of the driving tools. Ecosystem of electric vehicles to become concrete
penetrate the potential area EEC with opportunities and challenges as Regional electric vehicle production base
As mentioned above, electric vehicle industry is one of the target industries. that the government continues to promote concrete emergence, especially in strategic areas such as the EEC. have an analysis opportunities and challenges that has happened to this industry is interesting by Pimchat unanimous analyst from Krungthai COMPASS Research Center
“It is undeniable that in the past few years, the electric vehicle industry Worldwide is growing rapidly. Both from the attitude of consumers who are more open to electric vehicles than before. The stance of many countries that have begun to announce sales of internal combustion engine (ICE) vehicles over concerns about environmental issues. Including the adjustment of industry leaders to develop more electric vehicles, of course, will create a ripple effect coming to Thailand, where ICE vehicles are product champions and have a strong supply chain in the EEC area for decades.”
“For Thailand Electric vehicles are considered the automotive industry of the future, which is one of the five existing industries with potential (First S-Curve) that will become the future that drives the Thai economy in the next phase.”
“The government is trying to lay a foundation to shift to the production base of electric vehicles and key parts of the region according to the “30/30” policy or to increase the production capacity of zero emissions (ZEV) vehicles to at least 30. % by 2030, and aims to accumulate 1 million electric vehicles nationwide by 2025.”
“However, the transition to Thailand’s electric vehicle production base may not be as easy as it seems. It is not only necessary to prepare in terms of accelerating the development of the auto parts and assembly industry. Along with accelerating the development of skilled workers, both New Skill Up-skill and Re-skill who only understand and can take advantage of new technologies, but also have to accelerate the development of parts that are the heart of electric vehicles, such as the “battery” It is another important element of the development of electric vehicles to move forward fully.”
“Although we have already seen some operators in the country announce the establishment of lithium battery plants in the EEC area, from Global Power Synergy Public Company Limited (GPSC), the electric power business in PTT Group T. Energy Absolute Public Company Limited (EA), including cooperation between Rojana Industrial Park and EVLOMO from the United States.”
“But it seems that Thailand still lacks upstream resources that are the heart of electric vehicle batteries such as lithium ore and nickel ore that will be a magnet for foreign investors to invest in the EEC. Foreign investors who have applied for investment promotion through the Board of Investment (BOI) in the past 5 years.”
“Most of them are in the production of tires for vehicles up to 110 billion baht, followed by the production of hybrid electric vehicles (HEV) at 43 billion baht, and the production of metal products including metal parts. 3.4 ten billion baht, respectively.”
“In addition, Thailand also faces competitors from ASEAN nations who hope to become an electric vehicle production base like “Indonesia” has the advantage of having the world’s number 1 nickel ore deposits, or about 20% of the world’s resources. which is another important raw material in the production of batteries for electric vehicles. As a result, automakers such as Toyota Hyundai and Tesla, as well as global battery manufacturers such as China’s CATL, South Korea’s LG, have been increasingly interested in investing in Indonesia in recent years.”
“Therefore, creating added value in the intermediate and downstream battery manufacturing processes. especially the battery installation and assembly business Which has a market value in the country in 2020 up to almost 15 billion baht, coupled with accelerating the promotion of infrastructure in the country and measures that attract investment in all aspects In addition to helping Thailand to maintain its competitiveness with other countries’ automotive production bases It will also help to attract the EEC area as the main destination for investors in terms of other modern industrial investments. of the ASEAN region as well,” concluded an analyst from Krungthai COMPASS Research Center.
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