The Thailand Automotive Institute (TAI) has suggested 19 measures for the Industry Ministry to promote the government's electric vehicle (EV) scheme as it is concerned the country will lose competitive advantage against Indonesia, Malaysia and Vietnam.
Five measures are considered urgent, meaning they should be pushed by the government in 2020, said Adisak Rohitasune, acting president of TAI.
According to TAI's vision 2030, announced yesterday, the urgent measures are reforming the vehicle tax structure; offering incentives for buyers; reforming regulations for the EV charging business; elevating manufacturers' capabilities; and human resource development.
Mr Adisak said the existing vehicle tax is unsystematic, while the excise tax regime has shifted from calculations based on engine size to CO2 emissions since early 2016, in line with the global environment trend.
The same calculation will be applied for motorcycle excise taxes from early 2020.
"Some vehicle platforms have a similar tax rate, such as hybrid and plug-in hybrid EVs, but hybrid cars release more CO2 emissions than plug-in hybrid versions," he said.
"The vehicle tax regime should be revised and some overlapping regulations should be revoked, while the government should add safety and autonomous standards to be calculated for the tax regime."
In addition, Mr Adisak said the vehicle tax regime should emphasise negative impacts such as traffic congestion and road facilities that motorists should pay for legally.
In addition, the registration tax should increase for older vehicles. Under the existing tax code older cars pay lower taxes than newer ones.
"The tax regime needs to cooperate with many ministries -- Industry, Finance, Energy and Transport -- to take serious action," said Mr Adisak.
The TAI has a long-term roadmap for Thailand to become production a hub for EVs in Southeast Asia, with a goal to produce 2.5 million cars in 2030.
Some 15% of the total production must be battery EVs and 60% of produced cars have to be on the third level vehicle autonomy, which entails conditional automation for intersection pilots, emergency driver assistant, highway autopilot and valet park assistant.
"Only high-end cars fall under the first and second autonomous levels, with driver assistance and partial automation," said Mr Adisak.