EV adoption in Thailand accelerating but challenges remain: ABeam Consulting

Improved government incentives and the entry of new market players offering more choices to customers are the key factors accelerating market adoption of fully electric vehicles (EV) in Thailand. But despite a positive start to 2022, there is more that automotive companies can do, according to ABeam Consulting Thailand, a Japanese-based consultancy firm with specialties in digital transformation (DX). 
 
The Thai government has set ambitious targets to have EVs account for 100% of vehicles sold and 50% of vehicles produced in Thailand by 2035. For a country that averaged about 1 million vehicles in annual sales and 2 million vehicles in annual production before the pandemic, it is a big task to achieve. The new incentives announced in February 2022, which consist of a package of import and excise duty cuts and direct subsidies, are aimed to increase the EV adoption rate now and to commit vehicle manufacturers to begin EV production in the near future. With new incentives in place, and with signed agreements with several automakers already, the country should begin to bridge the gap with other countries, in particular China and European countries that are much further ahead in their journey towards EV future.

“It’s an exciting time for the EV industry as many steps have been taken by the government to make it easier for suppliers, automakers, and consumers to accelerate EV adoption. Overall, the future outlook for EV growth in Thailand is very promising. There are currently some global headwinds including supply bottlenecks and significantly higher than before raw materials costs, but these should be temporary. The long-term future looks bright as incentives take effect, more investment is made in the industry, and consumers become much more aware of the benefits of owning an electric vehicle. At the same time, the charging infrastructure is improving, and the number of charging stations is increasing,” said Supreeda Jirawongsri, Principal, Head of Digital Competency at ABeam Consulting (Thailand) Ltd.

According to ABeam Consulting, while the outlook is good, industry players must take appropriate actions and adjust their strategies and operations, so that they take advantage of new trends and help accelerate the industry transition.

For example, in manufacturing, automakers and suppliers should together build intelligent supply chains utilizing IoT, Big Data, AI and Blockchain that increase visibility, optimize operations and help prevent potential bottlenecks. Established automakers who still heavily rely on the production of Internal Combustion Engine (ICE) vehicles can adopt flexible manufacturing systems that leverage their existing assets to make the transition to EVs less risky and less costly. Suppliers, in particular those that currently rely on ICE powertrain parts, need to act fast and prepare the right strategy to pivot to other products and services and develop new partnerships.

Car retailers should play a role of educator to help customers understand the benefits and address any specific concerns. They should also aim to deliver a seamless omnichannel experience and optimize their retail footprint and operations so that they can reduce costs.

EV charging players should investigate what partnerships with automakers, commercial fleet owners or other EV charging players they can develop to increase the number of drivers using their charging stations. Beyond that, there are opportunities create additional revenue streams by hosting advertisements or collecting commissions from products sold to EV drivers while they charge their vehicles.

To find out more about how ABeam Consulting Thailand can help your business transition to an EV future, please contact contactthailand@abeam.com. or visit the upcoming Future Mobility Asia 2022 Forum held in BITEC, Bangkok on 20-22 July 2022 which ABeam Consulting is supporting as the knowledge partner. 

ABeam Consulting (Thailand) Ltd. is a subsidiary of ABeam Consulting Ltd. – headquartered in Tokyo having 6,600 people serve more than 1,100 clients throughout Asia, the Americas and Europe providing consulting services in Thailand since 2005, ABeam Consulting (Thailand) has more than 400 professionals serving more than 200 clients in Thailand with expertise in business and digital transformation services that create strategic advantage, improve business processes, leverage technology innovation and enhance organizational performance. 

Please contact us at contactthailand@abeam.com or visit https://www.abeam.com/th/en for more details.