Thailand’s USD 6.5 Billion EV Industry Set to Power Commercial Real Estate Growth

• 10 November 2024
• International News
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Thailand’s fast-growing electric vehicle (EV) industry is projected to generate a real estate market worth at least USD 6.5 billion by 2030, driven by government policies and strong foreign investments. As the country aims to solidify its position as Southeast Asia’s leading hub for EV manufacturing, this growth will fuel demand for specialised real estate to support manufacturing, research, and industrial expansion. Jones Lang Lasalle (JLL) Managing Director Michael Glancy highlighted this potential in a statement that was published on RetalkAsia on 13 September 2024.

Thailand’s EV industry is poised for continued expansion, thanks to the government’s ambitious 30@30 policy, which mandates that 30% of all vehicles produced in Thailand by 2030 must be electric. The 30@30 initiative, along with the EV 3.5 incentive package for 2024-2027, includes substantial subsidies and tax cuts to encourage investment in EV production. Glancy emphasised, “For the full potential of this industry to be realised, the role of commercial real estate as the backbone of the EV market’s long-term sustainability cannot be understated.”

As of 2024, Thailand’s strategic initiatives have already attracted USD 1.8 billion in investments, with major contributions from China’s BYD Company Limited, investing USD 1.4 billion, and Japanese automakers committing USD 4.4 billion. These investments reflect the global confidence in Thailand’s EV sector and its potential to drive economic growth through both local and international capital.

To meet the 30@30 target, Thailand will need to produce more than 34 GWh of EV batteries by 2030, requiring significant real estate for new manufacturing facilities. The country currently boasts 167,000 electric vehicles on the road, meeting 26.4% of its goal to have 440,000 EVs by 2030. This rapid growth is also driving the need for high-tech manufacturing spaces and R&D centres, as noted by Glancy: “Research and development are critical for maintaining Thailand’s competitive edge in the EV industry, which requires specialised real estate to support high-tech production and robust supply chains.”

Key players in the EV ecosystem, such as Hyundai and CATARC, have already set up R&D facilities in Thailand, while BYD has opened a parts warehouse in Bangkok, and Tesla has established a comprehensive facility that includes a service centre and parts warehouse. This surge in activity is further supported by the government’s focus on promoting R&D through subsidies and tax incentives for carmakers investing in advanced technology.

Beyond traditional manufacturing, JLL foresees growth across related sectors within the EV ecosystem, such as software and AI integration, battery technology, tires, and rubber production.

“Thailand’s combination of policy support, infrastructure, and talent will be critical in transforming its ambitions for the EV market into a sustainable reality,” Glancy concluded, reinforcing the significance of the country’s industrial economy in shaping its future.

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