Driving towards a green future
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Driving towards a green future

The Electric surge in Thailand's automotive sector

Driving towards a green future

Charting the electric pulse of Thailand’s roads, UOB’s U-Drive is powering a green revolution, steering the nation towards a cleaner, sustainable tomorrow.

The transport sector, responsible for rapid greenhouse gas (GHG) emissions, is currently at the epicentre of global attention. With projections that the vehicle fleet will double by 2050 and the increasing GHG emissions, there’s an urgent need to reimagine our roads. Electric vehicles (EVs) are emerging as the clear frontrunners in this shift towards sustainable transportation.

In Thailand, this shift is more pronounced than ever. The streets of Bangkok, infamous for their traffic jams and consequential emissions, underline the urgency of the situation. However, there’s light at the end of this smog-filled tunnel.

Thailand’s Electric Aspirations

The Eastern Economic Corridor, covering parts of Chon Buri, Rayong, and Chachoengsao provinces, has identified the next-generation car industry as a cornerstone of its development. The Federation of Thai Industries predicts a production of 1.9 million vehicles this year, with significant exports planned. To spur this electric revolution, the government has rolled out incentives, with tax cuts and subsidies for car manufacturers and importers.

The government’s vision is not just about economic growth. A move towards EVs is intrinsically linked to Thailand’s carbon neutrality goal by 2050. The phenomenal 1,605.4% surge in battery EV sales from January to July this year signals the nation’s readiness for this change. Newly appointed Industry Minister Pimphattra Wichaikul encapsulated the mood, stating the EV industry is Thailand’s new bullet to a strengthened, long-term economy.

U-Drive: Steering Thailand Towards a Sustainable Future

Against this transformative landscape, UOB Thailand presents U-Drive: a monumental step towards cleaner, more efficient transport. U-Drive isn’t just about cars; it’s about creating a comprehensive financial ecosystem that empowers stakeholders across the EV spectrum.

From automotive brand owners, car dealers to EV Charging Infrastructure providers, U-Drive ensures that electrifying transportation isn’t just an aspiration, but a tangible reality. This initiative isn’t just about selling cars; it’s about creating a sustainable ecosystem. The programme provides support to the entire value chain facilitating the country’s transition to greener transport. 

U-Drive isn’t just another transformative programme. Designed to be a beacon for green mobility in Thailand, it is a sustainable financing solution, envisioning a greener and cleaner Thailand.

Collaborations with key industry players, for example, BYD Auto Industry and Rever Automotive, and EVCI partners are testaments to U-Drive’s holistic approach. Through cutting-edge green trade financing facilities tailored to bolster Rever Automotive, this collaboration extends to their entire dealer network, catalysing the growth of eco-friendly businesses across the nation. 

To this end, UOB Thailand has established Green and Sustainable Trade Finance that facilitates the seamless import of EV cars from BYD China to Rever. And it doesn’t stop there. Rever’s local distributors benefit from UOB Thailand’s Green Distributor Financing Programme, empowering them to bring BYD cars to the hands of Thai customers.

The Road Ahead

As the world grapples with environmental challenges, it is endeavours like U-Drive that offer a glimmer of hope. With its comprehensive sustainable financing solutions, UOB is championing the cause of green finance, reaffirming its commitment to achieve net-zero emissions by 2050.

The transportation landscape of ASEAN is undergoing a paradigm shift, and with initiatives like U-Drive, UOB positions itself as not just a spectator but as an agent of change. They’re not just building a portfolio; they’re crafting a vision for tomorrow.

In conclusion, as we stand at the crossroads of change, it is collaborations like UOB Thailand’s U-Drive that illuminate the path forward. By seamlessly merging finance with sustainability, U-Drive proves that the road to a cleaner, greener future is not just a dream but a journey that has already begun.

This article is part of a 20-part series that explores what it takes to create and secure a sustainable future. In collaboration with UOB. You can view the whole series here.

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