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8 Aug 2019

Industry

Electric vehicle sales in 2019 expected to reach 32,000 units, surging 61%, while overall vehicle sales growing only 1.8% (Business Brief No.3018)

         For the vehicle market in 2019, KResearch views that although the auto market registered decent growth in 1H19, there are negative factors dragging on the market in 2H19, especially the Bank of Thailand’s measures to control  auto loans approved by commercial banks. Consequently, auto sales in 2H19 may contract 3 percent to 536,000 units. Auto sales for the whole year may increase slightly 1.8 percent or a total of 1,060,000 units. 
         In spite of mild overall growth of the auto market, Thailand’s electric vehicles rose counter to the overall market trend. KResearch estimates that in 2H19, at least 18,400 electric vehicle units will be sold in Thailand or a jump of 75 percent YoY. The remarkable increase is attributed to the launches of several electric vehicle models in the past 1-2 months and new models to be introduced in the remainder of the year. 
          Overall, KResearch forecasts that Thailand’s electric vehicle market in 2019 will expand 61 percent or 32,000 units, up from 19,880 units in the previous year. The rise is attributed to the adjusted pricing of newly-launched electric vehicle units, which make them more affordable for consumers. Moreover, the consumer perception toward cost of electric car ownership has become more positive as battery price is expected to steadily decline. Moreover, there are other factors, namely, longer warranty periods for cars and batteries. Therefore, Thailand’s overall electric vehicle market is set to grow this year.