Thailand Auto Trends: The rise of pure electric cars
The Thai automotive industry is at a pivotal point, with the electric vehicle (EV) market experiencing significant growth despite a broader downturn in overall car sales. Ipsos research highlights the key drivers behind this shift, the increasing consumer openness to EVs, and the challenges that still need to be addressed.
The Rise of EVs Amidst a Shrinking Market
While Thailand's overall automotive market has contracted to levels not seen since 2009, primarily due to economic pressures like rising household debt and tighter lending policies, the EV sector continues to expand. In the first quarter of 2025, sales of electrified vehicles (xEVs) which include BEVs, PHEVs, and HEVs, increased by 7% year-on-year, accounting for over 40% of total vehicle sales. Hybrid electric vehicles (HEVs) were a major growth catalyst, making up 62% of the xEV market and signaling a transitional phase for many consumers.
The Influence of Chinese OEMs
The Thai EV market is highly competitive, and new Chinese original equipment manufacturers (OEMs) are leading the charge. Their success is driven by the introduction of competitively priced and strategically positioned products. This trend was clearly demonstrated at the 46th Bangkok International Motor Show, where Chinese brands secured more than half of the top 15 spots for highest bookings. Brands like BYD, GAC AION, Deepal, and GWM dominated, surpassing their Japanese and European rivals.
Thai Consumers Are Open to EVs, But Adoption is in Early Stages
Ipsos' research Ipsos.Digital FastFacts reveals a promising but still nascent market for EVs in Thailand. While 77% of Thai drivers currently own a traditional petrol car, only 5% own an EV. However, the future outlook is much more electric. When asked about their next vehicle, 33% of respondents said they would consider a battery/EV, a figure that surpasses the 28% who would opt for a petrol vehicle. A large portion (32%) would also consider a hybrid. This trend indicates a strong and growing consumer interest across all age groups.
Key Drivers and Challenges for EV Adoption
The Thai government is actively supporting the EV transition with policies like tax reductions, purchase subsidies, and the development of a charging infrastructure, aiming for 30% of vehicle production to be EVs by 2030. Consumers are influenced by several factors when considering a switch:
Top Drivers for Switching to EVs:
- Price and Value (57%): Competitive pricing from Chinese OEMs, coupled with eco-friendly benefits.
- Environmental Concerns (51%): A societal shift toward sustainability.
- Superior Technology (49%): Advanced features like ADAS and infotainment are becoming standard.
- Better Driving Experience (41%): The smooth and quiet ride of EVs is highly appealing.
Challenges to Broader EV Adoption:
- Range and Battery Anxiety (60%): Concerns about driving range and battery life.
- Safety Concerns (54%): Worries about battery risks.
- Total Cost of Ownership (51%): Uncertainty about long-term expenses.
- Insufficient Charging Stations (50%): Limited charging infrastructure.
- Resale Value (42%): Concerns that the lower upfront cost may lead to lower resale value.
The Co-existence of ICE and BEV
While the shift to electric vehicles is undeniable, it is important to note that the internal combustion engine (ICE) is not disappearing from Thailand's roads anytime soon. The ICE vehicle will maintain a majority market share in certain segments, particularly in the robust pickup truck category, which has long been a staple of the Thai automotive landscape. While BEV technology is developing at a much quicker pace, manufacturers are also investing in making ICE vehicles more efficient, with new models capable of achieving impressive fuel economy.
This co-existence underscores a transitional market where both technologies will continue to compete for consumer attention, with each holding a unique appeal for different customer segments and use cases.
At Ipsos, we leverage our deep understanding of consumer insights and market trends to help automotive companies navigate this transformative landscape. Our research and advisory services provide our clients with the actionable intelligence they need to succeed in the dynamic automotive sector. We help brands understand evolving consumer perceptions, address key adoption barriers, and develop strategies for a competitive advantage.
Want to understand the full picture? Dive deeper into the expert analysis with our comprehensive POV - THAILAND AUTO TRENDS: THE RISE OF CHINESE OEMS.
