Electric Vehicle Industry Disrupts Fossil Fuel Sales in Thailand

Strategic Insights -

Thailand's electric vehicle (EV) industry is gaining momentum, disrupting sales of fossil fuels as oil and coal trading firms enter the market. Local oil retailer Susco Plc and Thai coal trader Asia Green Energy Plc anticipate significant revenue from their newly-developed EV businesses. Despite a sluggish domestic automotive market, attributed to prospective buyers' difficulties in accessing auto loans, both companies are optimistic about the industry's growth prospects. Susco has been a sales agent of EVs under the BYD brand since the second half of 2023, while Asia Green Energy has been leasing MG cars to taxi drivers since early this year.

Key Takeaways:

  • Susco Plc, a local oil retailer, expects to double its EV sales to 4,000 units this year, up from 2,000 units in 2024.
  • Asia Green Energy Plc, a Thai coal trader, anticipates total revenue from EV businesses to reach 10 billion baht by 2030.
  • The Thai EV market has a high potential for growth, with domestic oil prices remaining high being a positive factor for EV sales.
  • The price war and stricter criteria for granting loans have affected EV sales, but business leaders are optimistic about the market's improvement in the second half of this year.
  • Chaiyrit Simaroj, managing director and chairman of Susco's board, believes the price war will not recur and notes that household debt is a major cause behind banks' cautious approval of loans.
  • Pongtham Daenwangderm, managing director of AGE EV Plus, which runs an EV rental service, states that the Thai EV market still has a high potential to grow.

Statistics:

  • Household debt in Thailand fell to 87.4% of GDP in the first quarter of 2025, from 88.4% in the previous quarter, according to the Bank of Thailand.
  • Susco Plc sold 2,000 units of EVs in 2024, compared to its target of 3,200 units.
  • Asia Green Energy Plc expects to generate 10 billion baht in revenue from its EV business by 2030.
  • The Thai EV market is expected to grow significantly, driven by high domestic oil prices and a potential improvement in the market in the second half of this year.

Sources:

  • Bank of Thailand
  • Susco Plc (insider information)
  • Asia Green Energy Plc (insider information)
  • AGE EV Plus (insider information)