Car Giants Urge Thailand to Back Hybrid Path to Electric Vehicles

 

Leading car manufacturers from Japan, China, and Europe have collectively urged the Thai government to support the adoption of electrified vehicles (xEVs) alongside traditional petrol and diesel models.

 

The companies emphasised that a gradual shift is necessary, with hybrid vehicles playing a crucial role in familiarising customers with electric technology before a full transition.

 

At a recent Board of Investment (BOI) seminar titled “Shaping the Future of xEV in Thailand – Opportunities for Innovation and Growth,” representatives from six major automotive players – MERCEDES-BENZ, BMW, TOYOTA, HONDA, MG, and CHANGAN – discussed the future direction of xEV development in the country.

 

Martin Schwenk, the Chief Executive of Mercedes-Benz (Thailand) Limited, highlighted the company's existing investments and wide product range in Thailand, particularly in battery electric vehicles (BEVs).

 

While acknowledging consumer hesitancy towards BEVs, he stated that the company's policy remains unchanged.

 

Schwenk suggested that more cautious customers might find plug-in hybrid vehicles (PHEVs) more appealing initially, acting as a gateway to full electrification as familiarity grows.

 

"We are significantly invested in battery technology, with our first European battery plant already operational. Sustainability is paramount, encompassing energy efficiency, solar power, and tyre recycling. Clear and consistent regulations are also vital, alongside positive employee relations," Schwenk noted.
 

 

He concluded by requesting that the Thai government: 1. Provide a clear roadmap for xEV policy, with opportunities for industry input. 2. Recognise the significant contributions of companies like Mercedes-Benz through taxation and the high value of their vehicles by aligning regulations more closely with flexible EU standards. 3. Reduce trade barriers and foster collaborative agreements to boost vehicle production and exports.

 

Rene Gerhard, Chief Executive Officer of BMW Group Thailand, explained that the company is developing a diverse model range incorporating petrol, electric, and hybrid powertrains to meet global trends.

 

He stressed the importance of a "green" value chain, requiring sustainability throughout the entire production process, from raw materials to manufacturing.

 

BMW globally integrates sustainability across environmental, social, and governance aspects, aiming for a 40-million-tonne reduction in carbon emissions by 2030 across its value and supply chains.

 

The BMW i series exemplifies this commitment, utilising 100% recycled materials throughout its lifecycle.

 

"We urge the Thai government to adopt flexible policies that can adapt to evolving circumstances, as the global automotive landscape is in flux. Policymakers should also consider the perspectives of lower-volume manufacturers like BMW, who bring advanced technology and import a significant number of vehicles, often incurring high taxes," Gerhard argued.
 

 

Koji Iwanami, President of Honda Automobile (Thailand) Co., Ltd., stated that the company shares the Thai government's 2050 carbon neutrality target.

 

This ambition extends beyond vehicle production to encompass low-carbon products and enhanced customer convenience, such as pricing new EVs comparably to existing petrol models, necessitating significant technological leaps.

 

Acknowledging the current technological limitations in achieving this immediately, Iwanami believes that hybrid vehicles represent the most effective near-term solution for both customers and reducing environmental impact, offering enjoyable driving alongside ecological benefits.

 

With hybrid vehicle sales growing globally, the supply chain is a critical consideration. Given that batteries and motors constitute a substantial portion of vehicle costs, durable and locally produced components are essential.

 

Iwanami called on the government to support software development, IT-focused human resource development, and the rapid establishment of a comprehensive ecosystem, including supply chains, infrastructure, and skilled personnel, to create a sustainable talent pool for the Thai automotive industry.

 

Noriaki Yamashita, Chairman of Toyota Motor (Thailand) Co., Ltd., suggested that hybrid electric vehicles (HEVs) will facilitate easier customer adoption.

 

Toyota intends to provide comprehensive guidance to customers and invest further in Thailand for both domestic sales and exports. Hybrid vehicle sales are particularly strong in Thailand, outperforming growth in other regions.

 

While acknowledging the importance of BEVs, Yamashita noted that customer preference currently leans towards hybrids, which represent a vital technology.

 

Thailand remains a key hub for pickup truck production, and Toyota plans to develop electric pickup trucks for both local and international markets.

 

"We will increase our local content, with pickup trucks and eco-cars showing greater growth potential in Thailand compared to other countries, especially with government incentives. As the Thai market is currently contracting, supporting the development of HEVs and the supply chain requires a revitalised domestic economy. Government backing is therefore crucial, and Toyota will work closely with suppliers to enhance local content," Yamashita affirmed.

 

 

 

Guan Xin, Deputy General Manager of Changan Automobile Southeast Asia Co., Ltd., announced that Changan's Thai manufacturing plant is scheduled to open on May 16, 2025. 

 

He stated that the growth of the EV market hinges on battery technology, environmental consciousness, Thai government policies, and charging infrastructure. Changan aims to become a leading provider of low-carbon mobility solutions.

 

"Our long-term plan includes developing the Thai plant to serve the global market. Key challenges in Thailand include costs, workforce skills, and the current limitations in new technologies. Initially, we will need to bring in Chinese suppliers. Therefore, promoting collaboration between Thailand and China is essential to help local suppliers develop. For Thailand's EV sector to thrive, a robust charging infrastructure is paramount," Guan Xin emphasised.

 

Suroj Sangsnit, Executive Vice President of SAIC Motor-CP Co., Ltd., argued that the transition from internal combustion engines to electric vehicles for carbon reduction should begin with hybrid technology, potentially progressing to hydrogen or other future alternatives.

 

With 12 years of operation and a diverse range of platforms, the company believes in a phased approach that does not entirely abandon petrol models, as evidenced by their new hybrid version based on their eco-car platform.

 

Supporting 40% local content necessitates the development of local suppliers for key components, including batteries. Despite ongoing trade tensions, export opportunities exist, but vehicles exported to Europe might be classified as Chinese and face corresponding import duties.

 

Therefore, integrating Thai manufacturing is crucial to establish them as Thai products. This requires upskilling local content to encompass software, sensor systems, and electronics to become an integral part of the company’s supply chain.

 

"For Thailand's automotive industry to achieve its goals, clear government policy is essential. The car market is currently contracting due to household debt, a significant issue the government needs to address. Furthermore, universities should transition to EVs, and the charging infrastructure needs expansion. With a significant volume of batteries anticipated in the next decade, the government must proactively plan for their management," Suroj concluded.