Nissan failed to recognize how quickly Thais would turn to EVs
Thais have traditionally preferred Japanese cars for their personal vehicles but in the competitive EV market, China is winning hands down.
One of the reasons is of course price: Since 2018, thanks to the China-ASEAN Free Trade Agreement, electric cars imported from China enjoy zero import duty.
Isao Sekiguch, president of Nissan ASEAN, who is stationed in Thailand, admits that Nissan was slow off the mark in anticipating the market.
“The speed of the acceptance rate of EVs among Thai customers, even those living upcountry, was not what we anticipated. We are now redefining our strategy, putting all the possibilities on the table. We are particularly looking at the models we have on our global shelves that will appeal to Thai customers,” Sekiguch says.
“The scenario has changed. Today’s Thailand accounts for 11 per cent of the EV market. To put that in context, one in two of the vehicles we sold in Thailand was a pick-up. Now that ratio has dropped is less than one in three. And the EV penetration is led by Chinese OEMs who have committed to Thailand.”
China can ship CPUs without any import duty and they also receive cash incentives. Naturally, it is making the most of these benefits.
In the Philippines, Sekiguch described interest in EV cars as “up-and-coming”. “Things look good in Indonesia as EV cars can be driven everyday despite the odd-even license plate policy in Jakarta. Singapore’s policy, meanwhile, encourages the use of electrical vehicles as it moves towards zero emissions.
“In Thailand, we have partnered with the Electric Generating Authority of Thailand and are pilot testing bringing the energy back to the grid and vice versa.”
Nissan’s current EV car on the Thai market is the Nissan Leaf, which was released in March 2017.
“The fast speed of Chinese OEMs, breaking all the fresh models from China, was overwhelming and, as I mentioned earlier, the acceptance of Thai customers on these models was beyond my expectation.”
Isao ended the interview by saying that Nissan will investigate and explore all the opportunities and he is certain that this is also being done by its competitors. “We are also waiting to see whether the honeymoon period for Chinese EVs is here to stay. The answer is in the hands of Thai customers,” he concluded.
