The 35th Thailand International Motor Expo is a prime stage for imported battery EVs, as the government has received no commitment from makers to assemble these zero-emission vehicles domestically.
The localisation of battery EVs is needed to make retail prices cheaper, but a lack of confidence has the entire Thai auto industry apprehensive about getting into domestic production.
The world's best-selling battery EV, the Nissan Leaf, has arrived on Thai shores from Japan with a local price of 1,990,000 baht.
Nissan showcased the Leaf at the 2017 Motor Expo, then vowed to import the Leaf for local sale this year.
Antoine Barthes, president of Nissan Motor Thailand, said the second-generation Leaf is subject to a 20% import duty, an 8% excise tax, a 10% interior tax and a 7% value-added tax.
Normally, all import cars are subject to an 80% duty, but Nissan enjoys privileges under the Japan-Thailand Economic Partnership Agreement for battery EVs, effective since early 2018.
Even so, all those taxes mean that the local price of the Leaf is higher than the Japanese price of ¥3.15 million (896,000 baht). Japan's government offers a subsidy of ¥400,000 (¥1,000 per kilometre driven on a full charge).
"The introduction of the Leaf follows the Yokohama-based parent firm's plan to launch in Asia and Oceania, including Thailand, this fiscal year ending next March," Mr Barthes said.
Under Nissan's plan, South Korea has been chosen as the first country in Asia and Oceania to market the Leaf, while Thailand is the second country and a price will soon be announced for Australia.
Ratthakarn Jutasen, Nissan's vice-president for sales, said the Leaf will focus on three buyer groups: government agencies, housing projects and general customers.
The Leaf will be available at 33 Nissan outlets, but the company declined to reveal sales expectations.
Photo shows the crowds at last year's Thailand International Motor Expo. This year's crowds will probably be about the same size.
Although the government allows car makers to apply for privileges to manufacture battery EVs and enjoy an exemption from import duty and a 2% excise tax, Nissan has yet to make a decision on its application. The deadline is Dec 28.
On July 25, Nissan was granted privileges by the Board of Investment (BoI) to make hybrid EVs based on its e-Power technology and batteries at the plant in Samut Prakan, an investment worth 10.96 billion baht.
For the approved project, Nissan has yet to disclose any development at its local facility.
The Motor Expo is also a showcase for the Hyundai Kona EV, but a local price has not been announced and booking isn't available.
Hyundai has imported and marketed the Ioniq EV at a price of 1,749,000 baht and gained minimal sales. Another Korean peer, Kia, sells the Soul EV for 2,297,000 baht, achieving only two deliveries.
About 100 battery EVs are on local roads.
Hybrid EV production seems to have a clearer direction in Thailand, led by Japanese makers.
Toyota has already implemented its project approved by the BoI in March with the launch of the C-HR. The BoI announced on July 25 that Honda had applied for incentives worth 5.82 billion baht to make hybrid EVs.
Pitak Pruittisarikorn, chief operating officer of Honda Automobile Thailand, said the Accord sedan will be the first model to come in the hybrid version.
"The Thai-made Accord will be introduced in the first quarter next year," Mr Pitak said. "Honda will produce the hybrid version on every models sold in Thailand in the future."
Mr Pitak said the excise tax discount will narrow retail prices compared with conventional cars.
- Show details: 2018 Thailand International Motor Expo highlights
- See also: Additional information, previews, transportation (in Thai)
An EV sign sets the tone at the 35th Thailand International Motor Expo, which runs through Dec 10 at Challenger Hall, Impact Muang Thong Thani. (Photo by Wichan Charoenkiatpakul)