According to Hyundai Mobility Thailand, sales of electric vehicles (EVs) in Thailand could fall short of the projected 130,000 units this year because of the likelihood of pricing fluctuations.

Price wars are a barrier to the electric vehicle industry because they lead to volatile automobile costs, which discourages consumers, according to Wallop Chalermvongsavej, managing director of Hyundai's South Korean division.

The pricing war in Thailand began last year, when several Chinese companies reduced EV costs to attract customers as competition heated up. Wallop noted that several Chinese automakers dropped pricing to clear supplies.

He highlighted that volatile costs are bad for the EV market since they do not represent actual customer demand.

Hyundai, which markets its EVs in the luxury category, had earlier anticipated that up to 130,000 EVs will be sold this year, but has since reduced the figure to 100,000 units, which is still more than the 80,000 units sold last year.

Following government incentive packages to encourage the production and consumption of EVs in the nation, the Thai EV market grew rapidly. According to Wallop, this year's EV sales in Thailand will account for 10-15% of domestic sales, which are still dominated by internal combustion engine (ICE) cars.