Thailand’s automotive industry is urging the government to introduce new, non-monetary measures to stimulate demand for electric vehicles (EVs), including battery EVs (BEVs) and plug-in hybrid EVs (PHEVs). Industry leaders say the next phase of growth will depend on policies that go beyond financial incentives.
Krisda Utamote, former president of the EV Association of Thailand (EVAT), outlined a series of proposals aimed at enhancing consumer confidence and accelerating adoption. These include expanding public charging infrastructure, granting EVs access to dedicated lanes, offering preferential parking, improving battery safety standards, and tightening emissions rules for internal combustion engine (ICE) vehicles. According to Mr. Krisda, “These non-monetary measures will help to reduce the government’s fiscal burden in the long term, cut PM2.5 ultra-fine dust pollution, and support Thailand’s transition towards a green industry.” EVAT believes such steps will encourage more consumers to purchase BEVs and PHEVs, driving up car sales, and plans to submit its proposals to the National Electric Vehicle Policy Board once the new government is formed.
Thailand has relied heavily on monetary schemes such as “EV3.0” and “EV3.5”, which provide tax cuts and subsidies to EV manufacturers in exchange for investment in local BEV assembly plants. Industry players also stressed the importance of broader economic measures. Wallop Chalermvongsavej, managing director of Hyundai Mobility Thailand, said the government must focus on increasing household income and reducing debt to restore consumer confidence. “If the economy improves, people will feel more secure about spending, which will translate into higher vehicle sales,” he said.
Hyundai expects Thailand’s domestic car sales to reach 620,000 units in 2026, covering both ICE-powered vehicles and BEVs. BEV passenger car sales are expected to fall to less than 120,000 units this year from 120,301 units in 2025, according to data from the Federation of Thai Industries. Globally, BEV sales tallied 20 million units in 2025, driven largely by Chinese brands. Regionally, Thailand has emerged as a leader in EV adoption, with BEVs accounting for 21% of new passenger car sales in 2025. Vietnam leads with 38%, while Indonesia is at 15%.