Susco, Asia Green Energy bullish on EV industry
Local oil retailer Susco Plc and Thai coal trader Asia Green Energy Plc believe the EV industry offers bright prospects, though the domestic automotive market has remained sluggish, attributed mainly to prospective buyers' difficulties in accessing auto loans.
Susco has been a sales agent of EVs under the BYD brand since the second half of 2023 while Asia Green Energy has been leasing MG cars to taxi drivers since early this year.
Asia Green Energy has also expanded its business by setting up AGE Auto Gallery as a distributor of several EV brands, including Zeekr, Omoda & Jaecoo and Mitsubishi.
Chaiyrit Simaroj, managing director and chairman of the Susco board, is aware EV sales have been affected by banks' stricter criteria in granting loans amid a high level of household debt and a price war, but the market should improve in the second half of this year.
"The price war is becoming less severe and I believe it will not recur," he said.
Though some Chinese EV makers have resorted to cutting the prices of their vehicles in a bid to stimulate sales, this has made prospective buyers reluctant to purchase new cars because they anticipate that prices may continue to fall.
This may cause manufacturers to reconsider their pricing tactic, according to business leaders in the EV industry.
The household debt issue is a major cause behind banks and car financing companies' cautious approval of loans for fear of non-performing loans.
According to the Bank of Thailand, household debt continues to decline, falling to 87.4% of GDP in the first quarter of 2025, attributed to weaker loan demand from borrowers and stricter lending standards from financial institutions.
Household debt stood at 88.4% of GDP in the previous quarter.
Mr Chaiyrit expects Susco to double its sales of EVs to 4,000 units this year, up from 2,000 units in 2024.
"Domestic oil prices remain high. This is a positive factor for EV sales," he said.
Last year Susco set a sales target of 3,200 units but ended up selling only 2,000 units, mainly because of the price war and fewer auto loans.
Asia Green Energy also believes total revenue from EV businesses will reach 10 billion baht by 2030.
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