BUSINESS

Thai EV Sales Drop Casts Shadow on Chinese Automaker Ambitions

Published: Mar. 26, 2026 3:13 p.m. GMT+8

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Electric vehicle (EV) registrations in Thailand nosedived 80% to 6,168 cars in February from the previous month, following a dramatic reduction in government purchase subsidies, industry data showed.

The weakened demand signals mounting headwinds for Chinese automakers, who dominate the Southeast Asian country’s EV market and rely on it as a key export hub.

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Thailand’s EV registrations plummeted 80% to 6,168 cars in February 2025 after government subsidies dropped from 150,000 to 50,000 baht and became exclusive to locally-made vehicles.
Chinese brands dominated nine of Thailand’s ten best-selling EV models in 2025, with overall annual registrations reaching 122,000 cars.
Rising oil prices may encourage EV demand, but January’s pre-policy sales rush had already absorbed much short-term market demand.

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Who’s Who

Tesla Inc.: Tesla Inc.'s Model Y was the only non-Chinese model among the top 10 best-selling EVs in Thailand in 2025. This indicates its significant presence in a market largely dominated by Chinese automakers.

BYD Co. Ltd.: BYD Co. Ltd. benefited from Thailand's EV3.0 scheme, enabling them to establish a strong market presence. They showed over 40 models, including four new releases, at the 47th Bangkok International Motor Show. BYD also offered aggressive discounts, cutting the popular Dolphin model's price by 15%. While BYD has seen a recovery in order acquisition, it's uncertain if this is due to the auto show or rising oil prices.

Chery Automobile Co. Ltd.: Chery Automobile Co. Ltd. is one of over a dozen Chinese automakers that participated in the 47th Bangkok International Motor Show. These companies collectively occupied nearly half of the exhibitor slots to boost sales following a significant reduction in government EV purchase subsidies in Thailand.

Guangzhou Automobile Group Co. Ltd.: Guangzhou Automobile Group Co. Ltd. (GAC) is a Chinese automaker that is active in the Thai electric vehicle (EV) market. GAC participated in the 47th Bangkok International Motor Show, which began on March 23, to help boost sales after a significant drop in EV registrations in February. Chinese automakers, including GAC, occupied nearly half of the exhibitor slots at the event.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. was mentioned in the article through a former employee responsible for its Thai business. This individual noted that rising oil prices in Thailand, previously following the Russia-Ukraine war and currently due to Middle Eastern conflicts, could shift consumer interest toward new-energy vehicles.

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What Happened When

2022：: Thailand launched the EV3.0 scheme offering varying cash subsidies for imported passenger EVs based on battery specification and retail price.

In 2022：: Russia-Ukraine war broke out, causing retail oil prices in Thailand to nearly double at one time.

2025：: Chinese brands occupied nine of the top 10 spots for Thailand's best-selling EV models; Tesla's Model Y was the only exception; domestic EV registrations reached 122,000 cars.

End of January 2026：: EV3.0 scheme expired.

Before February 2026：: Automakers rushed to maximize sales in January 2026, exhausting near-term market demand before the policy shift.

February 2026：: EV3.5 scheme took effect, with reduced subsidies (maximum subsidy cut to 50,000 baht, and limited to locally manufactured vehicles).

February 2026：: EV registrations in Thailand dropped 80% to 6,168 cars compared to the previous month after subsidies were slashed.

March 23, 2026：: The 47th Bangkok International Motor Show kicked off, with over a dozen Chinese automakers participating, including BYD showcasing over 40 models and offering discounts.

AI generated, for reference only