Funding Challenges for Electric Vehicle Startups in Thailand: A Qualitative Inquiry into Founders’ Experiences

Abstract

Aim/Purpose: This study aimed to explore the types of funding sources available to electric vehicle (EV) technology startups in Thailand and examined the factors influencing their funding strategies. It also investigated startups/entrepreneurs’ perceptions of future opportunities and challenges within the EV industry, along with their evaluations of current government funding policies.

Introduction/Background: The electric vehicle (EV) technology sector has witnessed a rapid expansion in recent years, accompanied by a proportional increase in the number of startups entering the field. Capital access for startups can be very challenging, especially when the industry is novel or during the early stage of the business journey. Access to the right type of funding is crucial for startups’ survival and long-term sustainable growth. Previous studies have examined startup financing and the ecosystem in Thailand, with a particular emphasis on tech and fintech startups, and provided valuable knowledge and insights. Still, research focusing specifically on the funding landscape of EV startups remains limited, despite the sector’s growing strategic importance. This gap highlights the need for a more specific study into the financial challenges and funding strategies of EV startups in the Thai context, particularly from the perspective of startup founders and ecosystem stakeholders.

Methodology: In this study, a qualitative research design was adopted to explore the funding experiences and ecosystem challenges faced by EV technology startups in Thailand. Data were collected through in-depth, semi-structured interviews with startup founders and key decision-makers within the EV sector. A purposive sampling technique was employed to identify information-rich cases. Participants were selected based on their active involvement in EV-related startups, their direct experience in seeking or managing funding, and their willingness to participate in the study. The interviews were conducted face-to-face. The resulting transcripts were systematically coded and analyzed using thematic analysis. Triangulation was applied by comparing findings across participants and validating themes through iterative reading, thereby enhancing the credibility and trustworthiness of the results.

Findings: Thai EV startups relied on a range of funding sources. The predominant funding source remained personal financing or bootstrapping, followed by other organizational funding mechanisms such as venture capital, crowdfunding, and angel networks. Factors influencing funding access included those embedded in the organization, such as business model, strategy and performance track record; the individual background of the founders i.e. experience, education, and personal networks; and external factors such as government policy. Participants also expressed their optimism about the potential of the EV industry, but also noted challenges related to international competition and macroeconomic uncertainties. While current government policies were perceived as supportive, there was a consensus that further development is needed to enhance the global competitiveness of Thai EV startups.

Contribution/Impact on Society: This study contributes to the growing body of literature on startup financing and innovation ecosystems by offering a focused investigation into the funding landscape for electric vehicle (EV) startups in Thailand. Insights and information gained from this study can be used as a basis for developing strategic recommendations tailored to the Thai context.

Recommendations: Future policies should address critical challenges derived from global market conditions while fostering sustainable growth and enhancing competitive advantages for local entrepreneurs or startups throughout the electric vehicle value chain.

Research Limitation: This research employed a qualitative research approach, which presents certain limitations, including a small sample size and findings that are context specific. Thus, this restricts the ability to generalize and may not apply to other settings, such as different markets or industries.

Future Research: Future studies should consider increasing the sample size and employing different research approaches to capture more diverse and representative perspectives. This would not only enhance the reliability and validity of the findings but also improve their applicability to policy formulation and practical implementation, particularly in the context of supporting startups in emerging technology sectors.