Global car makers are calling on the government to extend the electric vehicle (EV) incentive package slated to end on Dec 31 for at least another six months to ease concerns over the price difference between locally made EVs and imported units.
The government is preparing to launch a new EV incentive package dubbed EV 3.5 after its predecessor, EV 3.0, expires.
The cabinet approved the EV 3.0 package in February last year to promote EV consumption between 2022 and 2023. Participating companies are committed to start producing EVs in Thailand from 2024.
Manufacturers that fail to keep the commitment must return the subsidy to the government and will be fined based on the excise imposed on their EVs.
“If the government extends the EV 3.0 for six months, it will help EV makers have more time to meet the government’s requirements as well as deal with their concerns over EV prices,” said Krisda Utamote, president of the Electric Vehicle Association of Thailand (EVAT).
Many car companies that need to produce EVs in Thailand are worried if EV 3.5 starts while they are producing EVs for sale, their prices will be higher than EVs, especially from China, which will be imported under the EV 3.5 package, he said.
They want the government to delay the launch of EV 3.5 to ensure they will not be at a disadvantage in the fast-growing EV market, said Mr Krisda.
EV 3.0 subsidies range from 70,000 baht to 150,000 baht depending on the type and model of vehicle, while there is a lower excise tax and import duties on completely knocked-down and completely built-up units.
The new EV incentive package requires the approval of the new National EV Policy Committee.
Mr Krisda said earlier he expects the new package to have fewer incentives than the current one because the government in 2022 was just beginning to build the domestic EV industry and needed foreign investors to fuel its growth.
He said it is possible the new EV incentive package will have a maximum subsidy of 100,000 baht.
Industry Minister Pimphattra Wichaikul made a pledge last month she would step up efforts to pass a new EV incentive package to grow the fledgling Thai EV market.
The National EV Policy Committee announced in 2021 it wants EVs to constitute 50% of locally made vehicles by 2030, seeking to make Thailand a regional EV hub.