Car manufacturers from Japan, China, and Europe have jointly urged the Thai Government to support the adoption of electrified vehicles (xEVs) alongside conventional petrol and diesel models.

The companies highlighted the need for a gradual transition, with hybrid vehicles serving to familiarise consumers with electric vehicle technology before a full shift takes place.

At a recent Board of Investment (BOI) seminar titled "Shaping the Future of xEV in Thailand - Opportunities for Innovation and Growth", representatives from six automotive companies - Mercedes-Benz, BMW, Toyota, Honda, MG, and Changan - presented their views on xEV development in Thailand.

Martin Schwenk, Chief Executive Officer of Mercedes-Benz Thailand, referred to the company's existing investments and product range in the battery electric vehicle (BEV) segment in Thailand.

While noting ongoing consumer reluctance towards BEVs, Schwenk stated that the company's policy remains in place. He suggested that plug-in hybrid vehicles (PHEVs) may be more acceptable to consumers initially, functioning as a transitional option towards full electrification as familiarity increases.

He made the following requests to the Thai Government:

1. To provide a clear and consistent roadmap for xEV policy, incorporating industry input;
2. To consider the contributions of companies such as Mercedes-Benz through appropriate taxation and vehicle valuation, with regulations more closely aligned to flexible European Union standards; and
3. To reduce trade barriers and facilitate collaborative agreements to support increased vehicle production and exports.

Rene Gerhard, Chief Executive Officer of BMW Group Thailand, stated that the company is developing a varied product portfolio comprising petrol, hybrid, and electric powertrains in response to global market developments.

He stressed the importance of a sustainable value chain, encompassing environmental considerations across all stages of production, from raw materials to final assembly.

BMW's global operations incorporate sustainability principles across environmental, social, and governance aspects. The company has set a target to reduce carbon emissions by 40 million tonnes by 2030 throughout its value and supply chain. The BMW i Series includes the use of recycled materials across its lifecycle.

Koji Iwanami, President of Honda Automobile Thailand, stated that the company supports the Thai Government's aim of achieving carbon neutrality by 2050.

This aim includes not only vehicle production but also the delivery of low-carbon products and improved consumer access, such as pricing new EVs at levels comparable to existing petrol models. This would require significant technological advancements.

Iwanami acknowledged that achieving this objective immediately is not possible due to current limitations and identified hybrid vehicles as a feasible short-term solution, offering a combination of utility and reduced environmental impact.

With global hybrid vehicle sales increasing, he noted the need for supply chain development. Given that batteries and motors account for a large proportion of vehicle costs, locally produced, durable components are considered essential.

He urged the Government to support software development, the development of IT-focused human capital, and the rapid establishment of a comprehensive automotive ecosystem. This includes supply chains, infrastructure, and skilled personnel, to build a long-term talent base within the Thai automotive industry.

Noriaki Yamashita, Chairman of Toyota Motor Thailand, stated that hybrid electric vehicles (HEVs) may encourage broader consumer adoption due to their relative familiarity and functionality.

Toyota intends to provide support to consumers and increase its investments in Thailand for both the domestic and export markets. Hybrid vehicle sales in Thailand have shown higher growth rates compared to other regions.

While acknowledging the role of BEVs, Yamashita noted that current consumer preferences tend to favour hybrid technology.

He also confirmed that Thailand continues to serve as a production centre for pickup trucks, and that Toyota is proceeding with the development of electric pickup models for both local and international markets.

Guan Xin, Deputy General Manager of Changan Automobile Southeast Asia, stated that the company's new manufacturing plant in Thailand is expected to begin operations on 16th May 2025.

He noted that the development of the EV market depends on battery technology, increased environmental awareness, government policies, and the availability of charging infrastructure. Changan is aiming to expand its role in low-carbon mobility.

Suroj Sangsnit, Executive Vice President of SAIC Motor-CP, expressed the view that the transition from internal combustion engines to electric vehicles should begin with hybrid technology, potentially progressing to alternatives such as hydrogen.

With more than 12 years of operational experience and a variety of vehicle platforms, the company is pursuing a phased approach that retains petrol-powered models, as seen in its new hybrid variant based on an existing eco-car platform.

Achieving 40% local content requires the development of domestic suppliers for critical components such as batteries. Despite international trade tensions, export opportunities remain. However, vehicles shipped to Europe may be subject to tariffs if classified as Chinese-made.

To mitigate this, the company emphasised the need to integrate Thai manufacturing in order to designate the vehicles as Thai products. This would require strengthening domestic capabilities in software, sensor systems, and electronics to deepen the localisation of the supply chain.