Posted on 07 Nov 2023
Thailand’s National Electric Vehicle Policy Committee recently cleared the new EV3.5 programme – the country’s latest version of incentives for the EV industry, Kallanish learns.
The new programme is expected to have fewer subsidies per vehicle than the old one, which is scheduled to expire at the end of this year.
Under the new package, for electric vehicles priced below THB 2 million ($56,423) and with a battery size of at least 50 kilowatt-hours, subsidies will range between THB 50,000 and THB100,000. For smaller EVs, priced between THB 1.2m and THB 1.7m, subsidies will range between THB 20,000 and THB 50,000.
The current and expiring programme offers subsidies ranging from THB 70,000 and THB 150,000 per vehicle.
The subsidy reduction reflects the growth of the country’s domestic EV market. Narit says EV sales increased sevenfold to 50,340 units in the first nine months of 2023, far more than any other market in Southeast Asia.
During 2024-2027, the new scheme will also offer lower import duty and excise tax options for investors to attract foreign direct investment (FID).
“In the first two years of the EV 3.5 programme, import duties on completely built-up EVs costing up to THB 2 million will be reduced by up to 40%, while excise taxes will be reduced to 2% from 8%,” explains Narit Therdsteerasukdi, secretary-general of Thailand Board of Investment (BOI). “The new EV 3.5 package shows that the Thai government will continue to support the battery electric vehicle industry and push Thailand as a regional manufacturing hub that welcomes investors.”
Thailand’s Prime Minister Srettha Thavisin already signed this new programme, for which the Federation of Thai Industries (FTI) considers the incentives “appropriate for current market conditions.”
Source:Kallanish
