SET-listed Nex Point, a local assembler of commercial electric vehicles (EVs), expects its sales to reach 5,556 units in 2024 thanks to higher demand from transport and logistics operators.
From January to September last year sales totalled 3,000 units, attributed to companies' campaigns to reduce carbon emissions from their vehicle fleets.
Businesses in the transport and logistics sectors are shifting towards battery-powered vehicles despite the government's policy to subsidise diesel prices, said Khanist Srivajiraprabha, founder and chief executive of Nex Point.
The company makes buses, pickups and tractor units at its factory in Chachoengsao's Ban Pho district.
Nex Point runs the business through its subsidiary Absolute Assembly Co, a joint venture with 55% investment from Energy Absolute Plc, a renewable energy and EV developer and operator, and 45% from Nex Point.
Mr Khanist believes demand for electric commercial vehicles will continue to rise this year after Nex Point started delivering vehicles to its customers in 2023, following a production delay caused by the Covid-19 pandemic.
"The domestic economy is not expected to grow significantly this year, but this is good for the EV business as logistics operators are tending to change from oil-powered vehicles to EVs to save expenses over the long term," he said.
Commercial EVs are more expensive than internal combustion engine (ICE)-powered vehicles, but operators will receive a reimbursement in the form of payment after using battery-run vehicles for a period of three years.
Among Nex Point's customers is Logistics Asia, a logistics service provider for Thai Namthip, a local bottler for Coca-Cola Co.
Logistics Asia is focusing more on green logistics to catch the global trend among companies in terms of trying to reduce their carbon footprint.
Leandro Martin Chazarreta, chief executive of Logistics Asia, said his company will allocate 100 million baht to support a plan to shift from ICE-powered vehicles to EVs over the next couple of years.
The firm recently received 10 electric trucks and an additional 18 units will arrive next month. The total number of vehicles is expected to reach 50 within 2024.
In 2025, Logistics Asia will also buy 30 more electric trucks.
Mr Chazarreta said his firm aims to have EVs make up 25% of its almost 400 trucks to help the company achieve its net-zero target, a balance between greenhouse gas emissions and absorption, within 2040.