October 5, 2016

Seminar airs doubts about state EV push

Industry players dread impact on existing cars
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The government is being urged to make a thorough study of the negative impact on parts makers, labourers and the automotive industry before promoting electric vehicles (EVs).

Anusorn Tamajai, dean of Rangsit University's Faculty of Economics, said yesterday at a university seminar that the state's policy to generate a fleet of EVs numbering 1.2 million units by 2036 was too broad and vague.

More importantly, the government has yet to come up with an in-depth study about the adverse effects on parts makers, workers and car manufacturers, Mr Anusorn said.

Thailand's automotive and energy development has yet to reach a stable point, and the second phase of the government-backed eco-car project is just starting investment, he said.

According to Mr Anusorn, Thailand's ambitious plan to make EVs is unlikely to bear fruit any time soon, with the development period likely to take 10-20 years.

Thanathorn Juangroongruangkit, executive vice-president of parts maker Thai Summit Group, agreed, saying EV production still confronts a spate of obstacles.

"EVs are similar to smartphones: we still need time for development, particularly for batteries, which could degenerate after being used for some time," he said.

Suradech Taweesaengsakulthai, president and chief executive of MAI-listed Cho Thavee Dollasien Plc, said the government should focus on battery manufacturing as a top priority if it wants to attract future production of EVs.

"Thailand's automotive industry can produce almost all components for vehicles, but we still lack the know-how to make batteries, which are expensive and an important part of electric vehicles," he said. "The government should encourage Thai manufacturers to produce batteries to protect local firms before attracting foreign direct investment in the longer term."

Mr Suradech said development should start with the government procuring a fleet of electric buses, vans and passenger cars. This pump-priming would interest vehicle manufacturers in starting production to support that demand.

On Monday, the Thailand Development Research Institute (TDRI) said the domestic car market was still focused on conventional vehicles and not ready for EV development.

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