Cabinet approves B2.92bn EV subsidy package
The cabinet on Tuesday approved spending worth 2.92 billion baht to subsidise electric vehicle (EV) purchases, aiming to drive Thailand to become the region's EV production base and increase the competitiveness of its EV manufacturing industry.
According to government spokesman Anucha Burapachaisri, the subsidies offered for the purchase of passenger cars, pickup trucks and motorcycles range from 18,000 to 150,000 baht per unit.
Under the scheme, a subsidy of 70,000 per unit of a battery electric vehicle (BEV) will be offered for passenger cars priced less than 2 million baht with a battery of 10-30 kilowatt-hours (kWh), and 150,000 baht per car for a battery of more than 30 kWh for completely knocked down (CKD) and completely built-up (CBU) units.
CKD pickups priced less than 2 million baht with a battery size of more than 30 kWh will be entitled to a 150,000 baht subsidy per unit.
Meanwhile, electric motorcycles priced up to 150,000 baht will receive an 18,000 baht subsidy per unit for both CKD and CBU units.
Mr Anucha said car companies which participate in the scheme are required to sign a cooperation agreement with the Excise Department to comply with the rules and conditions prescribed by the department and accept the penalties if they are unable to honour the conditions.
"The latest incentives are likely to promote the use of EVs in the country and lower the prices of EVs compared to existing cars and motorcycles with internal combustion engines," said Mr Anucha. "This will also aim to build up the confidence of automakers to invest in EVs while prompting consumers to buy EVs."
According to Mr Anucha, the government really wants Thailand to become a global hub for EV and parts production, as well as the use of zero-emission vehicles of all types.
In July, the cabinet approved additional tax incentives for EVs by lowering the annual car tax for EVs which are registered between Oct 1, 2022 and Sept 30, 2025 by 80%.
The cabinet also granted its approval to customs duty exemption for parts imported to assemble and produce BEVs in customs-free zones or free-trade zones of the Industrial Estate Authority of Thailand between 2022 and 2025, in a bid to promote local EV production.
Duangjai Asawachintachit, secretary-general of the Board of Investment, said the board is upbeat that overall EV production will reach 900,000 to one million units by late this year or early next year.
The BoI has already approved 26 EV projects from 17 companies with a combined capacity of 838,755 units.