The Thai government is proceeding with plans to develop the domestic electric vehicle (EV) industry, despite requests from automotive sector stakeholders to ease car loan regulations.

Industry representatives have urged the government to encourage banks to relax lending criteria to support both new and used car markets.

"We have already discussed the issue with financial institutions, asking them to grant more loans to buyers in the two markets, but have so far seen no sign of improving sales," stated Asadavut Asasappakij, a Thai automotive executive, in an interview with a local media outlet.

Strict loan conditions have emerged as a result of Thailand's high levels of household debt. These financial constraints are limiting access to vehicle financing and contributing to a decline in automotive sales. If these conditions persist, a further decline in both new and used vehicle markets is anticipated.

Asasappakij has stated that government intervention is necessary in response to the continuing drop in domestic car sales. An auto expert estimates that car sales in Thailand may reach only 520,000 units in 2025.

Manufacturers of both conventional vehicles and EVs have submitted requests to the government. The EV sector has called for the continuation of current financial incentives, including reduced import duties.

At the same time, the country's Board of Investment (BOI) is planning to provide additional financial incentives to encourage local EV production. The prices of internal combustion engine (ICE) vehicles have declined, influenced by increased consumer interest in EVs. EV prices have also fallen, reducing demand for used ICE vehicles.

The government has established a target to electrify 30% of the national vehicle fleet by 2030. This includes specific targets of 725,000 zero-emission vehicles, 675,000 electric motorcycles, and 34,000 electric buses and trucks.

According to Secretary General Narit Therdsteerasukdi, the EV industry in Thailand currently employs approximately 9,600 people, with 5,900 of these workers employed by BYD.

Narit further added that the current local parts content in Chinese-brand EVs manufactured in Thailand is at a ratio of 40:60. Chinese EV manufacturers have committed to increasing this to 90%. However, some companies are facing difficulties meeting the local content requirements necessary to qualify for government incentives.

Thailand remains one of several countries seeking to expand EV production and related infrastructure.