Thai cabinet approves scaled-down EV subsidy to boost local production

According to the Thailand Board of Investment, the second-phase package, which will be effective next year until 2027, offers subsidies for electric cars, pickup trucks and motorcycles, depending on the battery size and vehicle type, and includes lower import duty and excise taxes. Purchase subsidies of up to 100,000 baht per EV car, down from the current…

BANGKOK, Dec. 19 (Xinhua) — The Thai cabinet on Tuesday approved a scaled-down subsidy package for electric vehicles (EVs) aimed at boosting production within the Southeast Asian country and becoming a regional hub for the industry.

According to the Thailand Board of Investment (BOI), the second-phase package, which will be effective next year until 2027, offers subsidies for electric cars, pickup trucks and motorcycles, depending on the battery size and vehicle type, and includes lower import duty and excise taxes.

Purchase subsidies of up to 100,000 baht per EV car, down from the current 150,000 baht, will be part of the incentives to attract additional investment in the industry as a growing number of EV makers have already established their production bases in Thailand, said Narit Therdsteerasukdi, secretary general of the BOI, in a statement.

The subsidies are expected to support the production of about 830,000 EVs in the kingdom over the next four years, including 454,000 cars, 346,000 motorcycles, and 30,000 pickup trucks, as the government estimated to allocate 34 billion baht on incentives over the period, the statement said.

With its first phase launched in 2022, the incentive program has resulted in investments in the EV industry worth 61.42 billion baht, including projects for EVs, battery packs, parts, and charging stations, according to the Finance Ministry in a separate statement.

In the first 11 months of this year, 67,056 units of EVs were registered in Thailand, accounting for a 690 percent increase from the previous year, the ministry said.

Under Thai government policy, the nation aims to produce at least 30 percent of zero-emission vehicles by 2030, with a production capacity estimated at 725,000 units. (1 baht equals 0.029 U.S. dollars) Enditem