THE FUTURE OF ELECTRIC VEHICLES IN SOUTH EAST ASIA
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THE FUTURE OF ELECTRIC VEHICLES IN SOUTH EAST ASIA THAILAND
TABLE OF CONTENTS
Thailand: An Overview 3
Electric Vehicle Policy & Regulatory Environment 4-5
Awareness about Electric Vehicles 6-7
Key Factors Driving the Adoption of Electric Vehicles 8-9
Thailand is the second largest From an automotive standpoint,
Barriers to the Adoption of Electric Vehicles 12
THAILAND: economy in South East Asia after
Indonesia. With a GDP of USD 514.7
Thailand is the largest automotive
producer in ASEAN and the
AN OVERVIEW billion and a population of about 69
million, the GDP per capita works
second largest market after
Indonesia.
Profiling the EV Customer 12-13 out to nearly USD 7,500 making it
the fourth richest nation (after In 2017, the total vehicle demand
Singapore, Brunei, and Malaysia) was about 871,650 units, while
The Final Word 14 among ASEAN countries. 1,988,823 vehicles were produced
locally. The Automotive sector,
The Thai economy is strongly which accounts for 12% of the
List of Acronyms & Charts 15 export oriented with exports GDP, is also one of the key
accounting for more than 65% of contributors to exports with one
the GDP. At the centre of the in two vehicles produced being
Mekong Sub-region, Thailand also exported.
functions as an anchor economy
for Laos, Myanmar, and Cambodia.
Future of Electric Vehicles in South East Asia Future of Electric Vehicles in South East Asia
2 conducted by Frost & Sullivan in Jan 2018 conducted by Frost & Sullivan in Jan 2018 3
ELECTRIC VEHICLE
POLICY AND
REGULATORY
ENVIRONMENT
Thailand is currently the most active
country in South East Asia in terms of
developing EV support policies and rolling
out incentives specifically targeting EV
related investments. CORPORATE
A slew of measures have been on the road, supported by 690 INCOME TAX
launched by the Government
including investment promotion
charging stations nationwide.
EXEMPTIONS
incentives through the Board of The BOI incentives for hybrids,
Investment (BOI), lower excise plug-in hybrids, battery EVs,
taxes and waived import duties electric buses, charging stations
on battery EVs, standards and select EV components
Hybrids with 1 key EV
development by Thai Industrial comprise the following:
component production
Standards Institute (TISI), EV
(battery/motor/BMS/DCU)
charging infrastructure • Import duty exemptions on
50% reduction for 5 years if in
development and development machinery for all economic zones
Eastern Economic Corridor and
of battery waste management • Corporate income tax
applied for by December 2017
system by Department of exemptions
(Goal: assembly, production by
Industrial Works. The
2021)
Government is also aiming to Currently, the Government is also
ensure that 20% of all new deliberating on demand side
Plug-in hybrids
government vehicle purchases incentives for locally made EVs.
3-6 years exempt depending on
are EVs. These include tax rebate equal to
no. of local EV components, Bus EVs
10% of retail price (maximum THB
applications due by December 3-6 years exempt depending on
As per the 2015 EV roadmap, by 50,000).
2018 (Goal: car assembly, no. of local EV components,
2019 the Government plans to
production by 2022) applications due by December
develop production capability of Through all this policy support,
2018
1,000 electric buses per year, Thailand aims to be the EV
Battery EVs
mass production and manufacturing hub not only in
5-10 years exempt depending on EV charging
distribution capabilities for EVs ASEAN but globally as well. EVs are
no. of local EV components, 5 years exempt, applications due
and EV batteries, and mass poised to become the next
applications due by December by December 2018
production capability for EV “champion” product for Thailand,
2018
motors. By 2036, the plan is to after the success of pickups and
have 1.2 million passenger EVs eco cars.
Future of Electric Vehicles in South East Asia Future of Electric Vehicles in South East Asia
4 conducted by Frost & Sullivan in Jan 2018 conducted by Frost & Sullivan in Jan 2018 5
However, there is significant
Fig. 2: Intention to Buy an EV as the Next Purchase latent demand for EVs in
Thailand. About 44% of the
AWARENESS
respondents revealed that they
would certainly consider EVs
when they make their next
4%
ABOUT ELECTRIC
Not at all purchase decision (Fig. 2).
Compared to other regional
52% markets, the intention to
VEHICLES
Probably
purchase EVs was found to be
among the highest in Thailand.
Certainly 44% At 51%, men were found to be
more enthusiastic about EVs
than women (37%).
46% 51%
Certainly
n=146
Probably
Not at all
59% 37%
In Thailand, over 300 customers n=148
Fig. 1: Technology Association of EVs were interviewed as part of the
study. Despite the low EV uptake,
consumers are aware of the
differences between various EV
82% technologies such as Battery
Electric Vehicles (BEVs), Plug-in
44%
Hybrid Vehicles (PHEVs), Full
Hybrid, and Nissan e-POWER
vehicles.
Though the association of EVs
30% 33% with BEVs was the highest at
82%, it was much weaker than
26% other ASEAN markets and
marginally below the regional
average of 83%. This can mainly
of respondents are open
be attributed to the significant to purchasing an EV as
presence of full hybrids which their next car
skew consumers’ association of
EVs with Hybrids.
BEV PHEV Full Hybrid Parallel Hybrid
Battery Conventonal Hybrid vehicles High output
engines fuel engines having electric battery engine
charged and a battery motors. No charged by a
externally engine external small petrol
charged charger engine
externally
Future of Electric Vehicles in South East Asia Future of Electric Vehicles in South East Asia
6 conducted by Frost & Sullivan in Jan 2018 conducted by Frost & Sullivan in Jan 2018 7
KEY FACTORS DRIVING THE Fig. 5: Incentives Influencing Switch from Conventional Cars
Respondents felt that the
government has a critical role to
ADOPTION OF ELECTRIC VEHICLES
to Electric Vehicles play in promoting EV usage.
About 71% opted for tax waiver
Tax Waiver on Cars 71% from the Government as the key
factor that would help them
switch from conventional cars to
In Thailand, the survey reveals
Charging Stations
in Apartments 65% EVs (Fig. 5).
Fig.3: Motivating Factors for EV Purchase
that safety and charging Other (non-financial) incentives
Better safety standards 61% 30% 7% 2%
convenience run high on
customers’ minds (Fig. 3).
Priority Lanes for EVs 49% that would motivate customers
include installation of charging
Government incentives, stations in apartment buildings
especially tax breaks come next. (65%) and priority lanes for EVs
Toll Discounts 46% (49%).
Ability to charge at work 56% 34% 8% 2%
Free Parking 44%
Charging point at home 55% 36% 7% 2%
Very Important
Concessions on
parking locations 23%
Somewhat Important
Government incentives 49% 37% 11% 3%
Slightly Important
Not Important
Option to fast charge 48% 40% 10% 2%
Furthermore, while making a
Fig. 6: Impact of Fuel Source on Electric Vehicle Purchase Decision purchase decision for EVs,
customers would also take into
consideration the source of
power, and whether it is
22% 75%
Given the importance of safety, it renewable.
Fig.4: Features Important for Customers was not surprising that
respondents opted for ‘5-star About 75% of respondents
safety rating’ as the most mentioned that their choice
Yes, but it will Yes, and it will impact my decision would be significantly influenced
preferred feature if they were to
not have an to buy or lease an EV by the source of power (Fig. 6).
purchase or lease an EV (Fig. 4).
62% 58% About 62% of respondents put
impact on my
55% this among their top 3 choices
decision to buy
or lease an EV
However, this concern for the
environment was found to be
while 58% wished for ‘Less than 8
39% 36%
hours for a full charge’. much lower than in other
regional markets, the average
31% being about 81%.
5-star < 8 hrs Range of Top speed Better Space for
safety for a full > 100 km of > acceleration > 2 large
rating charge 120 kmph than a suitcases
petrol/diesel
vehicle
Future of Electric Vehicles in South East Asia Future of Electric Vehicles in South East Asia
8 conducted by Frost & Sullivan in Jan 2018 conducted by Frost & Sullivan in Jan 2018 9
Future of Electric Vehicles in South East Asia Future of Electric Vehicles in South East Asia 10 conducted by Frost & Sullivan in Jan 2018 conducted by Frost & Sullivan in Jan 2018 11
BARRIERS TO THE ADOPTION
Like in other markets, consumer is mainly a means of transport Fig. 9: EV Intender Profiles
attitudes correlate with three rather than a source of pleasure.
major profile groups of EV For them EVs represent the right
OF ELECTRIC VEHICLES
intenders: (1) Environmentalists, technology to meet their
(2) Basic Utility Drivers, and (3) utilitarian needs.
Trendy Enthusiasts (Fig. 9).
The third and the largest group 43%
The features of EVs, the value (43%) comprise trendy
Fig. 7: Adoption Barriers for Electric Vehicles these potential buyers expect, enthusiasts, who are interested in
and the prices they are willing to high-performance and look for a
Running out of power 58% 32% 8% 2%
pay depend on their attitude sense of luxury and
toward EVs. premiumness. They dislike
Safety concerns 48% 37% 12% 2%
Limited private infrastructure 47% Nearly 28% of the EV customer
“old-fashioned” cars, and look for
trendy models with innovative
29%
41% 11% 1%
base comprises technologies. The premium is on
Limited public infrastructure 46% 41% 10% 2% environmentalists, strongly advanced features, user-friendly
aware of the ongoing climate displays, and connectivity
Maintenance & operating costs 46% 43% 8% 2% 1% change. For these customers, EVs options. EVs help project that
Reliability of technology 45%
are the right solution for the image. 28%
41% 12% 2% environment.
For an equivalent specification
Better recharge by plugging 44% 41% 11% 2% 1% Approximately 29% of the and/or similar performance,
intenders are basic utilitarian more than 60% of EV intenders Trendy Enthusiasts
Higher purchase price 36% 43% 14% 5% 1% customers. They give are willing to pay up to 50% more
Basic Utility Drivers
importance to transport with the than a conventional car (Fig. 10).
Type of electricity generated 36% 47% 11% 4% 2% Environmentalists
lowest operating cost, the vehicle
Limited sizes and style 31% 50% 15% 3% 1%
Lower load capacity 29% 47% 18% 5% 1%
Fig. 10: Premium for Electric Vehicles, by % of Intenders
Poor resale value 27% 41% 22% 7% 2%
Very Important Somewhat Important Slightly Important
5% 1%
Slightly Not Important Somewhat Not Important
5%
20%
While there is significant demand
potential for EVs, there are
Range anxiety is the main drawback
for the adoption of EVs. Customers
Other adoption barriers include
limited public and private 8%
adoption barriers as well. are also unsure about the safety infrastructure for charging and
standards EVs adhere to. operating costs of EVs (Fig. 7).
61%
20% 17%
PROFILING Fig. 8: Age Distribution of Likely EV Buyers
THE EV 62%
Mean Age: 37.26
CUSTOMER 24%
33%
29%
22%
With a strong belief in EVs and
41-50% higher than conventional car 6-10% higher than conventional car
17%
their capabilities, 62% of likely
intenders are relatively young, 31-40% higher than conventional car 1-5% higher than conventional car
less than 40 years old (Fig. 8).
21-30% higher than conventional car Same price as conventional car
11-20% higher than conventional car Don’t know
20-29 30-39 40-49 50+
Future of Electric Vehicles in South East Asia Future of Electric Vehicles in South East Asia
12 conducted by Frost & Sullivan in Jan 2018 conducted by Frost & Sullivan in Jan 2018 13THE FINAL WORD A1: List of Acronyms
AEC ASEAN Economic Community
ASEAN Association of South East Asian Nations
BEV Battery Electric Vehicle
South East Asia is in the midst of Through steady penetration of
exciting times. The future of EVs, the automotive industry is CNG Compressed Natural Gas
mobility in the region is electric undergoing a virtual
and greener. However, transformation of sorts. Nissan is EV Electric Vehicle
leapfrogging in EV requires at the forefront of making this
strong collaboration between transformation happen through GDP Gross Domestic Product
public and private parties, and the Nissan Intelligent Mobility
PHEV Plug-in Hybrid Vehicle
devising a long-term approach portfolio. It is a vision to deliver
tailored to address each more electrification, more USD US Dollar
market’s unique situation. connectivity, and ultimately
more autonomy, to move people
to a better world.
A2: List of Charts
Fig. 1 Technology Association with EVs
Fig. 2 Intention to buy EV as Next Purchase
Fig. 3 Motivating Factors for EV Purchase
Fig. 4 Features Important to Customers
Fig. 5 Incentives Influencing Switch from Conventional Cars to Electric Vehicles
Fig. 6 Impact of Fuel Source on Electric Vehicle Purchase
Fig. 7 Adoption Barriers for Electric Vehicles
Fig. 8 Age Distribution of likely EV Buyers
Fig. 9 EV Intender Profiles
Fig. 10 Premium for Electric Vehicles
Future of Electric Vehicles in South East Asia Future of Electric Vehicles in South East Asia
14 conducted by Frost & Sullivan in Jan 2018 conducted by Frost & Sullivan in Jan 2018 15We Accelerate Growth WWW.FROST.COM
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