Toyota signs agreement for EV incentives

Toyota signs agreement for EV incentives

Toyota bZ4X is on display at the 43rd Bangkok International Motor Show, held from March 23 to April 3, 2022, in Muang Thong Thani, Nonthaburi province. (File photo)
Toyota bZ4X is on display at the 43rd Bangkok International Motor Show, held from March 23 to April 3, 2022, in Muang Thong Thani, Nonthaburi province. (File photo)

Toyota Motor Thailand on Friday signed an agreement to receive tax incentives and a subsidy for its battery electric vehicles (BEVs) from the Excise Department as part of a government push to make electric vehicles (EVs) more affordable.

The agreement was signed at the department and secures tax incentives and a subsidy for Toyota's bZ4X vehicles.

Lavaron Sangsnit, director-general of the Excise Department, said such agreements had already been established with Great Wall Motor Manufacturing (Thailand) Co and MG Sales (Thailand) Co.

The past agreements led to orders for over 5,000 vehicles.

Excise tax for BEVs has been reduced from 8% to 2% until 2026, with subsidies of 70,000-150,000 baht per car available to buyers.

Further supportive measures include the BEV import duty being adjusted to not over 40% from an initial 80% in the case of imports outside free trade agreements. The rate has cut the import duty of BEVs from Japan to 20%, South Korea to 40% and Europe to 40%.

BEVs imported from China enjoy 0% duty under a bilateral agreement.

State subsidies and tax incentives are expected to reduce BEV prices by at least 150,000-200,000 baht per car.

Car makers accessing state support must comply with conditions, including that they produce one BEV in Thailand per every one BEV they import. The 1:1 ratio of import-production must start in the third year after the agreement is signed and then increase to 1:1.5 in the fourth year.


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