Thailand’s EV Market Can Expect Rapid Growth following Arrival of Tesla and BYD

According to information found on the Department of Business Development’s website in late May, Tesla is now a registered company in Thailand. The analyst believes this will reshape Thailand’s stagnant automotive industry into a fast-growing sector beginning this year, with stocks like EA and NEX chosen as Top Pick.

Mr. Suwat Sinsadok, Managing Director of FSS International Investment Advisory (FSSIA), believes that the entry of major automakers such as Tesla from the United States and China-based BYD into Thailand’s electric vehicle (EV) market will significantly spur the industry’s both demand and supply growth.

On the supply side, FSSIA anticipates EV cars from Tesla and BYD would push other incumbent players, notably those from Japan and Europe, and newcomers like Great Wall Motors from China to speed production, marketing, and distribution plans. On the demand side, it will encourage consumers to move from ICEs to EVs.

FSSIA expects Energy Absolute Pcl. (SET: EA) to be the all-inclusive winner from the advent of Tesla and BYD, while Nex Point Pcl. (SET: NEX) will see a turnaround driven by the EV business, as both firms are now in the process of ramping up production after effectively addressing the delay in production and delivery of e-buses in 4Q21-1Q22.