With Thailand’s auto sales plunging by more than 25 per cent amid geopolitical headwinds and regional rivals nipping at its heels, Bangkok is racing to secure its status as South-east Asia’s electric vehicle (EV) hub – rolling out broader tax incentives to keep both Chinese and Japanese carmakers onside.

The Thai government recently sweetened the pot of tax and other incentives to cover all types of EVs, including hybrid EVs (HEVs), plug-in hybrid EVs (PHEVs), and mild hybrid EVs (MHEVs).

Observers said the latest policy enhancement that cover a wide range of electric and hybrid vehicles – known as xEV – is intended in part to placate non-Chinese players in the market, particularly Japan’s auto giants.

Amid Thailand’s ambitious push to become a leading electric vehicle (EV) hub in Southeast Asia, several Chinese manufacturers are drawn to the region’s enticing incentives and burgeoning market. However, these companies are now grappling with the stark challenges of local competition and a complex regulatory landscape.