Comparing to last year(2018), electric car in Thailand wasn’t popular at all. Due to high battery tax which double price of all imported electric cars.
For example, Tesla Model 3 price tag in U.S. is around $40,000, but it’ll cost around $131,000 in Thailand.
On the other hand, if you want to buy nissan leaf (40 kWh) without propilot in Thailand, it’ll cost you around $65,829. With this amount of money, you can purchase Tesla Model 3 Performance Version in U.S.
Compare to average wage in Thailand which is 25,000 baht($876) per head per month, give or take. There is impossible for middle income people to buy an EV car in Thailand to use for their daily communte.
What made EV become more popular in Thailand?
In mid 2019, one of car dealer in Thailand launched an EV car which imported from China. Not only they can sale the car in inexpensive price, but also distribute their cars to every dealers in Thailand without any obstructures. MG is a big car dealer in Thailand which powered by C.P. (charoen pokphand foods). The only reason that make this car dealer sale an EV car as lower price than any competitors in Thailand is “FTA 0%”.
FTA or A free-trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, import quotas and tariffs, and to increase trade of goods and services with each other.
Cite : wikipedia
The reason that made EV become more popular in Thailand is affordable price. In the past, EV car is too expensive, due to High battery tax in Thailand. However, MG company use FTA 0% which eliminate every tax boundaries including battery tax. Actually, this MG ZS EV was sold in England for only £26,995 ($35,391.66 or 1.06 Million Baht) which is only 10 % differentiate.
Reservation Rise to 2,200 in 2 months
After MG lauched this car back in June 2018, the reservation rised to 1,000 reservations within 1 month and continued rise to 2,2000 reseration within 2 months.
Now, MG ZS EV plans to delivery the car upto 1,500 EV cars within the end of this year(2019).
BLINK DRIVE TAKE
Do you know that Thailand manufacturer produced more than two million cars to both international market and domestic market in 2018?
However, none of these cars are electric. I mean a real electric car like what Tesla did (BEV).
Note : only one company in Thailand was allowed to produce electric car in 2019 is FOMM. Even Mercedes Benz try to get BOI, but got rejected from goverment.
cite : mercedes got rejected
The government want to halt the Mercedes-benz EV investment plan because they want to put the first priority to be hybrid car(HEV). The government also claimed that EV car manufacturer will disrupt a traditional car industry in Thailand.
This year, every car manufacturers around the world are moving toward to electric car manufacturer, but Thai industry is still in middle of nowhere. Due to huge investment in machinary which didn’t meet their ROI(return of Investment) yet.
I hope that Thai government must do somethings to change the direction of the Car industry, and relief the industry from this tension.
