Local EV production still a pipe dream

Local EV production still a pipe dream

Thailand is still far from producing the highly touted electric vehicles (EV) as the technology exists but driving distances limit interest, say industry analysts.

Yossapong Laoonual, chairman of the Electric Vehicle Association of Thailand (Evat), said it will be hard for battery electric vehicles (BEVs) fuelled by only electricity to run on Thailand's roads as they have a limited distance and there are few charging stations.

"Current BEV models can travel 200 kilometres per charge in Western countries, but in Thailand such cars could only travel 120km per charge because of use of air conditioners," Mr Yossapong told a seminar held by UBM Asia Thailand Co, an organiser of Intermach 2017.

Plug-in hybrid electric vehicles (PHEVs) that can run on both electricity and petrol get only 20km from their electric systems, he said.

"BEVs may not be plausible in a hot country like Thailand until there are more charging stations," said Mr Yossapong. "We hope the technology will be improved over the next five years."

He predicted around 120 firms and agencies will start to construct their own charging stations in 2018, mainly in the Bangkok metropolitan area, after they were awarded tax incentives this year.

The Board of Investment in March approved promotional privileges for EVs, including tax holidays of five to eight years. The privileges focus on production of HEVs, PHEVs and BEVs.

The promotions include passenger cars, pickups and buses, with different privileges based on production technology. HEVs are entitled to a tariff exemption for imported machinery, while PHEV investment is eligible for a corporate income tax exemption for three years and import tariff exemptions on machinery.

PHEV investors who manufacture more than one key EV part will be entitled to an additional year of corporate income tax exemption per piece, but the combined tax exemptions cannot exceed six years.

BEV investment is entitled to five to eight years of corporate tax exemption. BEV investors who make more than one key EV part will be entitled to another year of tax exemption per piece, but the combined exemption cannot exceed 10 years.

Thanawat Koomsin, president of the Thai Automotive Industry Association, said the market has to develop here to encourage leading carmakers to localise their EV production.

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