Thailand sees a bright future for the electric vehicle market in 2023. (Photo: VNA)

Bangkok – Thailand's electric vehicle (EV) market will continue to gain momentum in 2023, with sales expected to reach between 25,000 and 35,000 units, according to the Federation of Thai Industries (FTI).

The FTI said however, that whether the target will be attained depends on the availability of semiconductors which have become scarce worldwide, affecting the automotive industry.

The federation believes EV sales in 2022 could reach 1,000 units.

Surapong Paisitpatanapong, vice-chairman and spokesman for the FTI's Automotive Industry Club, attributed the growth in EV sales to their less aggressive prices and the state incentive package aimed at stimulating sales.

In February 2022, the Thai cabinet agreed to approve tax cuts and subsidies to promote EV consumption and production during the period 2022 to 2023.

Surapong acknowledged that the country is seeing a bright future for the EV industry after global EV manufacturing giants, notably Tesla and BYD, launched their electric autos in Thailand while others also announced their investments in car assembly in the country.

Though Thailand foresees growth in its EV industry, driven by the global campaign for zero emissions, the country has to deal with many challenges that could decelerate its growth, according to global management consultancy Arthur D. Little.

The prices of renewable energy and charging services remain high in Thailand, while the number of EV charging stations is insufficient to serve EV drivers, the company said.