Europe is another important market for Thailand's pickup exports. However, because of more stringent environmental measures for commercial vehicles in Europe, we at KResearch view that most of Thai pickups shipped to Europe will inevitably have to be upgraded to hybrid pickups over the near future. Since there is no production base of medium-sized hybrid pickups that are popular in Europe, this offers Thailand an opportunity to attract investment in the production of such pickups, thanks to the availability of necessary resources, though support is needed from the relevant sectors to quickly create its economies of scale. Moreover, Thailand needs to expedite FTA negotiations with the European Union (EU) in order to seize an opportunity to become a production base for hybrid pickups ahead of South Africa, being an important rival in pickup shipments to Europe.
KResearch views that if all factors are favorable, including there is sufficient demand for hybrid pickups in Thailand as a result of the government promotional policies, successful FTA negotiations with the EU over the near term and there is relatively slow technological development in battery electric pickups, share of Thai pickup exports to Europe may increase to 30-37 percent, against the current 20 percent, within the next five years. As a result, the value of Thai pickup shipments to Europe may increase to USD1.3-1.6 billion, increasing 47-81 percent over at least USD884 million projected for 2019.