Electric car subsidies: who will win?

Attractions related to electric vehicles (EVs) and battery manufacturing are expected to receive support from the government thanks to the reinstatement of EV support measures next year, Asia Plus Securities (ASPS) said.

The National Electric Vehicle Policy Committee (EV board)

scheduled to meet on Wednesday, with analysts predicting new support measures for electric cars and pickup trucks with small adjustments on subsidy ranging from 50,000 to 100,000 baht in the new scheme, compared with 70,000 to 150,000 baht in the current scheme. The new subsidy package for electric vehicles is set to replace measures in place until the end of the year as Prime Minister Sretta Thavisin has called an urgent EV board meeting on Nov. 1, the brokerage said in''research note. The subsidy on electric motorcycles is also expected to be removed, ASPS added.

"If the government announces further support measures for EVs starting next year, it will boost investor confidence in Thailand and help develop the domestic EV industry," the securities agent said.

Thai Investment Authority
approved 23 EV projects from 16 companies.

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Chinese manufacturers are leading the EV production segment in Thailand, most notably BYD, which has an annual production capacity of 150,000 units at its Rayong plant and a total investment of 17 billion baht.

"Measures to restore support for EVs will make companies in related sectors attractive to investors.'''Investors can make short-term speculative investments in equities that are likely to benefit from such policies,' said ASPS.

Companies

those expected to benefit are in industrial zone groups, with WHA Corporation as the leader, the brokerage said. Other beneficiaries include EV manufacturers Energy Absolute (EA), Nex Point (NEX) and PTT, as well as battery makers EV Global Power Synergy (GPSC) and EA, ASPS added.

Makers of EV charging stations, including EA and PTT Oil and Retail Business (OR), will also benefit. Companies involved in manufacturing electronic components for EVs, such as Delta Electronics (Thailand), KCE Electronics and Hana Microelectronics, are also expected to benefit if support measures for EVs are reinstated, ASPS reported.

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