Posted on 21 Dec 2023
Thailand has recently approved a THB 34 billion ($972 million) budget covering the 2024-2027 period, intending to become a major production hub for electric vehicles, Kallanish learns from Thailand’s Board of Investment (BOI).
Narit Therdsteerasukdi, the secretary general of the BOI and the executive committee secretariat of the National Electric Vehicle Policy Board (EV Board), announced the decision.
“The EV Board has approved the second phase of the EV Package, known as EV 3.5, to promote the EV industry’s continuous growth and to facilitate investment opportunities in EV manufacturing in Thailand for new players,” the official explains. “The package aims to support investment covering the entire EV industry ecosystem. Companies who have already participated in EV 3 are eligible to apply these measures complying with the conditions and regulations.”
As part of the EV 3.5 package, the government will provide subsidies for the purchase of electric cars, pick-up trucks and motorcycles. Subsidies, to be lower than the current EV 3 scheme, will be based on the vehicle type and battery capacity.
During 2024-2027, subsidies for EVs will be reduced from the current range of THB 70,000 to 150,000 per unit to between THB 50,000 and 100,000, depending on configuration.
At the same time, BOI has approved a deadline extension for EV registrations under the EV 3 package to 31 January 2024, from 31 December 2023. This aims to enable consumers planning to purchase EVs at the Thailand International Motor Expo to complete the registration process.
According to previous measures, EV consumers can still enjoy the current subsidies as long as the vehicles are registered by the end of January.
For passenger EV manufacturers, the EV 3.5 package allows a reduction in tax from 8% to 2%, for vehicles priced at THB 7m and under. Additionally, for passenger EVs priced under THB 2m per unit, during 2024-2025, it is possible that import duties can be reduced by up to 40% if they are imported as completely built-up units (CBUs).
To be eligible for the benefits, the batteries of the cars must pass the Industrial Product Standards (TIS) and tests at the Automotive and Tire Testing National Centre (ATTRIC).
Thailand aspires for zero-emission vehicles (ZEVs) to account for at least 30% of its total motor vehicle production by 2030.
Source:Kallanish
