Thailand’s EV Industry Fuels Commercial Real Estate Boom

Thailand is poised to become Southeast Asia’s leading market for electric vehicle (EV) manufacturing and innovation, which will have significant implications for the country’s commercial real estate industry. According to JLL (NYSE: JLL), sustained growth in Thailand’s EV industry, supported by government policies and foreign investment, will create an addressable real estate market of at least $6.5 billion (THB220 billion) by 2030, underpinning the country’s rise as a regional leader in EV manufacturing and innovation.
JLL’s forecast for the necessary real estate to support Thailand’s EV industry is based on several key developments. The Thai government’s ambitious 30@30 policy, aiming for 30% of all vehicles produced in Thailand to be electric by 2030, sets the framework for future real estate demand in the sector. The 30@30 initiative includes substantial subsidies, tax cuts, and the EV 3.5 incentive package, covering 2024-2027.
“Thailand has made a clear statement through the 30@30 policy and the EV 3.5 package – we have the ambition and drive to become the leading EV manufacturing hub in the region. The incentives are highly appealing to investors, manufacturers, and suppliers in the EV industry. However, for this industry’s potential to be fully realised on a national level, the role of commercial real estate in ensuring long-term market sustainability cannot be understated,” said Michael Glancy, Managing Director, Thailand and Indonesia, Jones Lang LaSalle (JLL).
As of 2024, Thailand’s strategic initiatives have attracted a diverse range of domestic and international investments in the EV sector, with a cumulative investment volume of around $1.8 billion. Notable contributions include a $1.4 billion (THB 49 billion) investment from China-based EV manufacturers, including BYD Company Limited (BYD), and $4.4 billion (THB 150 billion) from Japanese automakers.
To meet the 30@30 target of electric vehicles accounting for 30% of total car production by 2030, Thailand will need to produce over 34 GWh of batteries domestically, requiring significant new manufacturing and industrial space. By the end of 2023, there were 167,000 EVs in the country, representing 26.4% of the 2030 goal of 440,000 EVs.
Glancy highlighted, “Research and development are essential for maintaining Thailand’s competitive edge in the EV industry. This requires specialised real estate capable of supporting high-tech manufacturing, mass production, and integration with supply chains.”
Thailand’s EV sector continues to gain momentum with several noteworthy developments, including a focus on research and development (R&D). The government offers subsidies and tax breaks for automakers establishing R&D centres. Major players like Hyundai and China’s CATARC have already set up R&D facilities in the country. Additionally, BYD has opened a new parts warehouse in Bangkok, and Tesla has established a comprehensive service centre and parts warehouse.
JLL also predicts significant growth across all sectors connected to the broader EV ecosystem, such as software and AI integration, battery technology, tyres, and rubber.
“The influx of foreign investment demonstrates Thailand’s competitive edge in the rapidly growing EV sector. The combination of government incentives, a skilled workforce, and existing infrastructure makes Thailand an attractive destination for both new and experienced EV manufacturers. However, investment in manufacturing, R&D, and real estate across the wider ecosystem will be crucial to achieving Thailand’s EV ambitions and ensuring the sustainability of its industrial economy for decades,” Glancy added.