Electric vehicle (EV) sales are expected to reach a target of 50,000 units this year despite weak purchasing power, high household debt and banks' stricter auto loan criteria, says the Thailand Automotive Institute (TAI).
Last year, local EV sales tallied roughly 20,000 vehicles.
EVs remain popular partially because of the government's incentive package, part of efforts to make Thailand a regional EV hub.
Last year, the cabinet approved a package of incentives including tax cuts and subsidies to promote EV consumption and production between 2022 and 2023.
"We expect the Thai automotive industry to be healthy this year, especially the EV sector, which will see steady sales," said Kriengsak Wongpromrat, president of the TAI.
Companies will continue to import new EV models in the second half of this year, notably from China, as Thailand is viewed as a potential EV market with high spending among buyers, he said.
Chinese EV makers are expected to increase their market share as more car buyers opt for EVs instead of internal combustion engine (ICE) cars, said Mr Kriengsak.
He said the TAI is cooperating with car companies, academic institutions and EV engineers to train and upskill Thai auto parts makers on EV issues to accelerate their shift from ICE to electric mobility technology.
The training is occurring as the authorities continue to grow the domestic EV industry.
During the first half of this year, the Board of Investment granted investment promotion benefits to 14 battery EV (BEV) manufacturers with a combined project value of 33.9 billion baht, representing an annual production capacity of 276,640 units.
Manufacturers that are granted EV incentive packages are committed to developing EV assembly plants in Thailand.
The TAI expects to see the first locally made BEVs by the first quarter of 2024.
Earlier the Federation of Thai Industries' Automotive Industry Club trimmed its 2023 car production target to 1.9 million units, down from 1.95 million units, as banks tightened their auto loan criteria, which would affect domestic car sales. However, Mr Kriengsak said this shift in lending criteria does not necessarily mean it will have a serious impact on the automotive industry.