Core Insights - The Thai government has revised its battery electric vehicle (BEV) incentive program to boost exports and address concerns of a domestic supply glut due to increased production capacity, primarily from Chinese brands [1][3] Summary by Sections Incentive Program Changes - The Board of Investment (BOI) has modified the EV3.0 and EV3.5 incentive programs, allowing each BEV produced for export to count as 1.5 units towards local production obligations, up from 1 unit previously [2] - These changes aim to compensate for reductions in excise duties and other incentives that facilitated new entrants in the local market [2] Investment and Market Impact - Thailand has attracted approximately US$ 4 billion in investments related to BEVs and components since the introduction of the EV3.0 and EV3.5 programs, mainly from Chinese automakers like BYD and GWM [3] - BEV sales reached nearly 90,000 units in the first ten months of 2025, representing over 18% of total vehicle sales, driven by increased production and competitive pricing from Chinese manufacturers [3] Additional Regulatory Adjustments - The registration deadline for BEVs under the EV3.0 program has been extended to January 2027, while the EV3.5 program's deadline has also been moved to January 2027 [5] - The government will delay subsidy payments to manufacturers not meeting targets and has extended the deadline for imported battery cells to count as local production until June 30, 2026, up to 10% of the BEV price [5] - Manufacturers can exit the import compensation program by returning excise tax discounts, with additional penalties imposed [5] - Support measures for hybrid electric vehicle (HEV) production will be fast-tracked [5]

Sales Performance Overview - Ford's overall sales increased by 1.6% in October, with internal combustion engine (ICE) vehicle sales up by 3.4% compared to October of the previous year [1][3] - However, electric vehicle (EV) sales saw a significant decline of 24.8%, attributed to the absence of the $7,500 government incentive [1][2] - Hybrid vehicle sales also decreased by 4% [2] Market Expectations - Analysts have raised their projections for full-year sales over the past month and a half, but October and November are expected to be challenging months [4] - The anticipated sales rate for October is projected to be between 15.7 million to 15.8 million vehicles [3] Consumer Behavior Insights - Despite the poor sales numbers, there is no indication of a drastic drop in consumer demand; dealers report steady traffic in showrooms [6][7] - There is a concern that the negative sales figures may lead to perceptions of a weaker consumer market, although dealers do not report a significant decline in demand [5][6] Seasonal Trends - December is typically one of the strongest months for vehicle sales, and it remains to be seen if this trend will continue this year [4][5]