Sharge Management Co, a provider of charging systems for battery-powered vehicles, is planning to expand and adjust its business by forging new partnerships or raising funds as demand for electric vehicles (EVs) grows.
Increasing demand is expected to lead to more EV charging outlets, causing Sharge Management to prepare for a shift in its business direction to focus more on electricity supply for EVs, as the EV charger market will become saturated in the future, said managing director Peerapatr Sirichantaropart.
Consumers are more interested in electric cars, reflected by high EV bookings at the 2023 Bangkok International Motor Show, which ended on April 2.
The booking numbers skyrocketed by 300% year-on-year to 9,234 units during the 12-day event.
He said the company is considering a plan to increase registered capital and list on the Stock Exchange of Thailand, as well as join hands with other companies to grow its business.
Sharge Management is interested in working with companies in power generation, car manufacturing and real estate development.
Mr Peerapatr said the company wants to synergise its expertise in EV charging with experts in other fields as it sees potential to develop businesses in power and grid development.
Sharge Management is keen to grow EV-related businesses after the government launched a policy to promote the EV industry in 2017, he said.
In 2021, the National EV Policy Committee announced it wants EVs to constitute 50% of locally made vehicles by 2030, part of an ambitious plan to make Thailand a regional EV production centre.
Last year, the cabinet approved a package of incentives including tax cuts and subsidies to promote EV consumption and production between 2022 and 2023.
At present, there are 4,985 EV charging outlets nationwide, according to the Electric Vehicle Association of Thailand.
Mr Peerapatr said he believes the EV industry requires investment of more than 2 billion baht for charging facility development between 2023 and 2030 to increase the charger total to 7,000 to serve the increasing number of electric cars.
Sharge Management is drafting a long-term strategy to earn more revenue from electricity sales to EV drivers, related to expected market saturation in the future charger business, he said.
Roughly 90% of the company's total revenue comes from charger installation and the remaining 10% comes from electricity sales.
Within five years, the revenue proportion from the charger business is expected to decline to 60%, with electricity sales jumping to 40%.
According to Mr Peerapatr, the company expects its revenue to increase by almost six times this year to more than 300 million baht, up from 56 million last year, because of the rapid growth of the EV market.
Sharge Management plans to allocate capital spending worth US$1 million this year to support its business, including the development of a data collection system, he said.