The Future of Automotive Hub in Thailand

Seongjin Lee, Automotive Lead Partner, Deloitte Southeast Asia

Chodok Panyavaranant PhD, Growth Senior Manager, Deloitte Thailand

The global automotive industry is undergoing an intensive shift towards electrification, driven by environmental concerns, fuel cost savings and advancements in Electric Vehicle (EV) technology.

Whilst the adoption of EVs is accelerating in mature markets like the UK, Japan and China, other regions, including Southeast Asia, are navigating unique challenges and opportunities. As one of Southeast Asia's automotive hubs, Thailand is poised to play a pivotal role in this transition.

Consumer Preferences and Challenges

According to Deloitte's 2025 Global Automotive Consumer Study, over 50% of consumers in Southeast Asia markets prefer Internal Combustion Engine (ICE) vehicles over EVs due to concerns about affordability. Globally, the US has the highest preference for ICE vehicles at 62%, followed by India at 54%, Southeast Asia at 53% and Germany at 53%. In contrast, consumers in the UK, Japan, the Republic of Korea and China show greater openness to EV options compared to other countries surveyed.

Hybrid vehicles are gaining popularity in Thailand as they balance traditional ICE technology and electrification. Preliminary data indicates that ICE and Plug-in Hybrid Electric Vehicles (PHEVs) are becoming more favoured in the surveys conducted between 2024 and 2025.

However, challenges such as range anxiety, lack of public charging infrastructure, and high upfront costs continue to hinder widespread EV adoption.

Key reasons consumers globally intend to acquire EVs include:

1. Environmental Concerns: There is increasing awareness of climate change, which is fueling interest in EVs. Our survey shows that India, Southeast Asia and Germany are the top three regions leading this trend. The Thai government has launched an ambitious "30@30" policy initiative. This plan aims to ensure that by 2030, at least 30% of the vehicles produced in Thailand will be Zero-emission Vehicles (ZEVs).
2. Lower Fuel Costs: EVs provide substantial savings compared to the ICE option. Over the past five years, oil prices have fluctuated significantly due to global events, economic conditions and geopolitical factors. Our survey indicates that this trend is the primary reason customers in Southeast Asia, Japan, the UK and Thailand choose EVs.
3. Driving Experience: Consumers appreciate EVs' quieter rides and improved performance. Modern models deliver supercar-level performance at more affordable price points, which is one of the top three reasons consumers in China, Southeast Asia and India choose EVs.

Charging Infrastructure: A Critical Bottleneck

Charging infrastructure is a cornerstone of EV adoption globally. Public charging infrastructure investment is crucial for the EV ecosystem. Survey respondents in Southeast Asia markets often travel further than 100 km from their homes than those in mature markets like Japan or the US. This underscores the need for strategically located public charging stations along highways and urban centres.

Consumers globally prefer dedicated EV charging facilities over traditional gas stations with integrated chargers. In Thailand, fast-charging stations with up-to-date technology could alleviate range anxiety and improve consumer confidence in EVs. Fast charging time remains the most critical factor for surveyed consumers across global markets.

Our research indicates that some European car makers are investing in research and development for static and dynamic wireless charging systems. Meanwhile, some Chinese Original Equipment Manufacturers (OEMs) are offering battery swapping in their local markets.

Consumer Expectations

Our survey also found two key expectations for customers who mention Battery Electric Vehicles (BEVs) as follows:

1. Driving Range: Expectations for BEV driving range differ considerably across global markets. In India, nearly half of the surveyed consumers (47%) anticipate a driving range of more than 400 km. In contrast, 80% of consumers in Germany view this range as a requirement for considering a BEV as a viable option. For Thailand, around 40% of customers prefer a driving range of 300 to 499 km per charge.
2. Time required to charge: Consumers in most markets will wait up to 40 minutes to charge. This is similar to the situation in Southeast Asia including Thailand, as people have stopped comparing it to the time taken for fossil fuel refills.

Addressing these expectations through targeted marketing campaigns and transparent communication regarding advancements in battery safety can help build consumer trust.

Market Opportunities for Thailand's EV Industry

Thailand's EV sector has immense potential to capitalise on the global shift towards electrification. Key opportunities include:

1. Strengthening Tier-2 and Tier-3 Suppliers: Invest in workforce training and advanced manufacturing technologies to support Tier-2 and Tier-3 suppliers in transitioning to EV production.
2. Expanding Domestic Battery Production: Promote local battery production and recycling to reduce imports and encourage innovation in technologies like solid-state batteries.
3. Leveraging Tourism for EV Infrastructure: Install EV chargers at tourist sites and partner with hotels to promote eco-tourism and EV adoption amongst visitors.
4. Attracting Foreign Investment: Foster joint ventures between foreign automakers and local suppliers and develop the Eastern Economic Corridor (EEC) to make Thailand a Southeast Asian EV export hub.
5. Diversifying Vehicle Segments: Focus on electrifying public transport, producing electric commercial vehicles and offering affordable EVs to increase adoption in rural areas.

Conclusion

Global is at a pivotal point in its electrification journey. Whilst ICE vehicles are still prevalent due to affordability, hybrids are crucial for the transition to full electrification. To become an EV production hub in Southeast Asia, Thailand must focus on developing infrastructure, providing incentives, and advancing battery technology.

This transition will require collaboration amongst government agencies, automakers, energy providers and consumers. By addressing challenges like charging accessibility and costs, Thailand can leverage its manufacturing capabilities to lead in sustainable mobility whilst promoting cleaner transportation aligned with global environmental goals.