Lawmakers are joining energy officials in promoting a plan to make Thailand a hub of electric vehicle production as oil-powered cars looks to be disrupted by more affordable EV technology.
Deputy House Speaker Suchart Tancharoen said members of parliament are ready to support the transition, following a months-long delay because of Covid-19.
During the pandemic when global travel was restricted and oil prices plummeted, demand for EVs was still robust, signalling their impact on internal combustion engine (ICE) manufacturing may happen sooner than expected, he said.
Many European countries expect to phase out ICE-based cars by 2030.
In Bangkok, battery prices for EVs are falling, making EVs more attractive, Ravee Machamadol, adviser to the House Committee on Energy, told a forum on Monday.
In March the government set up the National Electric Vehicle Policy Committee, chaired by former deputy prime minister Somkid Jatusripitak. However, the committee, which comprised 30 experts in the EV industry, only met once before the Covid-19 outbreak.
"From now on, the committee will help carry out the EV plan," said Mr Ravee.
He said if EVs can beat ICE car sales, the disruption will affect 850,000 workers employed at ICE car factories.
Energy Policy and Planning Office chief Wattanapong Kurovat said the ICE industry contributes less to GDP, dropping to 6.4% last year from more than 7% over the past decade.
The number of EVs in Thailand rose to 4,306 units in June last year, from less than 3,000 in 2018, said Electrical Vehicle Association of Thailand chairman Yossapong Laoonual.
Officials may need to revise their target EV number from 2 to 3 million by 2035 if EVs become more popular, said Mr Wattanapong.
It is time for state and private agencies to work together in preparation for this disruptive technology, he said.
Thailand has prepared for EV development since 2015 without significant progress because of the high price of vehicles and lack of charging outlets, said Mr Yossapong.
He suggested the government take the first step to support the EV industry by subsidising EVs to relieve the financial burden on manufacturers and buyers.