Thailand bets on potential of Chinese EVs amid surging fuel prices

Thailand is turning to Chinese automakers as it looks to rev up the development of its EVs sector and become a regional hub for electric-powered cars.

Many people in Thailand are choosing to get behind the wheel of EVs, a switch driven by raised environmental awareness among the public, as well as other factors including spiking fuel prices, which have risen by more than 20 percent since the beginning of last year.

"When I'm driving, I'm driving the diesel one day about 100 kilometers, and the cost of the petrol or gas is quite high at the moment. When I switch to the EV car, the cost is almost nothing," said Attapon Chawtrasri, an electric vehicle owner.

Despite this increasing appetite, the number of EVs remains relatively small in Thailand, with just under four percent of vehicles being battery powered.

Thailand has vowed to reduce its greenhouse gas emissions by 20-25 percent by 2030 and aims for carbon neutrality by 2050, with the country hoping a transportation revolution and a move away from heavy polluting vehicles can help to meet these targets.

The government is hoping that favorable policies and new market players can potentially boost innovation in the EV industry, with Chinese car-makers already making a splash.

"The arrival of Great Wall Motor and MG has created more interest in electric vehicles. People are becoming more aware and do more research, which is speeding up the EV growth," said Wannadit Wan-in, president of the Zero Emission Vehicle Association of Thailand.

In a market dominated by Japanese automakers which garners nearly 90 percent of the country's vehicle sales, Chinese EVs, though new to the field, are gaining traction and quickly catching up to the competition.

It is no surprise that when Great Wall Motors launched their 100 percent electric vehicle last year, online orders jumped to almost 4,300 units within a matter of 24 hours.

"In this space, there will be more [players] from Chinese brands as well as other brands to help create this whole ecosystem. And I think with the acceleration of government policy for both tax and non-tax, we hope that there will be more usage of the EV in the Thai market," said Narong Sritalayon, managing director of Great Wall Motor Thailand.

The auto industry is one of Thailand's most important sectors, which contributes to more than 10 percent of the economy and employs more than 800,000 workers.

The objective for Thailand is to transform itself from the Southeast Asian hub for the production of conventional cars to the one making electric vehicles, with the plumes of black smoke and the growl of engines set to become a thing of the past as the region gears up to go green.