Posted on 23 Feb 2024
The Thai government is expanding its electric vehicle support and promotion efforts to large commercial vehicles, approving incentives to encourage the uptake of electric trucks and buses.
The country’s National Electric Vehicle Policy Committee (EV Board) approved on 21 February two policies complementing the so-called EV3 and EV3.5 measures. The schemes originally focused on passenger vehicles.
Now, the use of e-buses and trucks will be supported by a special tax deduction granted to companies eligible under the scheme. The incentive will be effective until 31 December 2025. The EV Board says that companies purchasing vehicles manufactured domestically “will be able to deduct expenses of 2 times the actual price of the vehicles, without a price ceiling being set. For the purchases of imported vehicles, the deduction will be equal to 1.5 times the actual price of the vehicles.”
Eligible vehicles include container trucks, liquid trucks, hazardous substance trucks, special trucks, tow trucks, as well as electric buses, both air-conditioned and non-air-conditional vehicles.
Additionally, the Thai government is promising financial support and “possibly other benefits” to companies planning battery cell manufacturing in the country. Investment proposals must be submitted by the end of 2027, but a few criteria must be met, Kallanish notes.
Investors must be a recognised battery manufacturer to EV makers, with projects preferably targeting battery production for both EV and energy storage applications. Successful bidders will have batteries with an energy density of at least 150 watt-hours/kilogram, and a life cycle of at least 1,000 cycles, among other technical requirements.
“We believe this [package] will significantly increase the adoption of electric trucks and buses, reduce pollution from the transportation and manufacturing sectors, and support companies’ moves to reach their net-zero targets,” says Narit Therdsteerasukdi, secretary general of the Thailand Board of Investment (BOI). “The measures to promote investment in the production of battery cells, a key element of the supply chain, will help ensure the sustainability and resilience of our EV ecosystem.”
As the top automotive producer in the ASEAN region, Thailand is moving to establish itself as an EV manufacturing hub. The country plans for EVs to make up at least 30% of its automotive production by 2030. That translates to 725,000 cars and 675,000 motorcycles, according to BOI.
The incentives offered to both manufacturers and consumers should help the country achieve the so-called 30@30 goal. As part of the EV 3.5 package, greater incentives are offered to those vehicles assembled in the country. Cars priced at THB 7 million ($194,693) and under can enjoy an excise tax reduction from 8% to 2%. Electric cars priced at BHT 2m which are imported as completely built-up units (CBUs) can also benefit from a reduction in import duties of up to 40% until the end of 2025.
Since the start of the scheme in 2022, over 78,000 vehicles, from a total of 14 manufacturers and importers of BEV cars and pick-ups, have claimed excise tax discounts and subsidies. Under the EV3 scheme, companies will have to produce in Thailand at least one vehicle for each vehicle imported. This ratio will increase to 3:1 by 2027.
Source:Kallanish
