Thailand's battery electric vehicle (BEV) market is expected to gain significant momentum this year, with sales projected to surpass 120,000 units partially due to soaring oil prices, says the Electric Vehicle Association of Thailand (EVAT).
On March 25, domestic oil prices spiked by 6 baht per litre following heightened tensions in the Middle East conflict.
Domestic fuel prices remain volatile and could climb higher, said Suroj Sangsanit, president of EVAT.
"Passenger car BEVs and electric commercial vehicles such as trucks, vans and pickups will be the main drivers of growth this year," he said.
EVAT is monitoring consumer interest at the 47th Bangkok International Motor Show, which runs from March 25 to April 5.
According to the Federation of Thai Industries, domestic BEV sales surged 80% last year to 120,301 units.
While rising oil prices may discourage purchases of internal combustion engine (ICE) cars, Mercedes-Benz Thailand chief executive Christian Schell cautioned that the shift to BEVs may not be dramatic as Thai consumers have options such as hybrid and plug-in hybrid vehicles, which continue to rely on oil.
China's BEV brands are expanding aggressively in Thailand, attracted by government incentives under the EV 3.0 and EV 3.5 schemes, which provide tax cuts and subsidies to manufacturers.
EVAT believes 2026 will be a breakthrough year for commercial BEVs as logistics firms, transport operators and government agencies look to reduce fuel costs.
Industries such as cement and consumer goods are already exploring a transition from diesel to electric fleets.
Chen Bing, chief executive of China Trucks (Thailand) Co, the distributor of EVs under the Dongfeng brand, announced the launch of its heavy-duty Tractor Head KL6x4, marking the brand's entry into Thailand's commercial EV market.
Dongfeng plans to sell 100 units this year, rising to 300 units next year.
The company is considering building a manufacturing plant in Thailand and investing in EV truck charging stations, while seeking local partners for joint ventures, said Mr Chen.
Talks are ongoing with Siam City Cement Plc, which is evaluating a purchase of 200 heavy-duty trucks.
Drivers are test-driving Dongfeng's vehicles for three months before making a final decision.
"Thailand is a major market for China's BEVs in Southeast Asia, supported by the government's carbon neutrality policy," he said.
"These factors make Thailand highly attractive to new investors looking to expand their businesses."
