Thai authorities want next year's electric vehicle (EV) production capacity to reach 359,000 units based on investment of 39.5 billion baht, say industrial officials.
The state EV policy and investment incentive packages should help increase production, said the Office of Industrial Economics (OIE).
"After the EV3.0 scheme boosted demand for EVs in Thailand, the new EV3.5 scheme should further drive EV investment and manufacturing," said Warawan Chitaroon, director-general of the OIE.
EV3.0 refers to a package of incentives including tax cuts and subsidies to promote EV consumption and production between 2022 and 2023.
The subsidies range from 70,000 baht to 150,000 baht depending on the type and model of vehicle, with lower excise tax and import duties on completely knocked-down and completely built-up units.
Participating car companies are committed to starting to produce EVs in Thailand from 2024.
Last month, the National EV Policy Committee approved the second-phase EV incentive package, dubbed EV3.5, covering 2024-27.
This package consists of subsidies worth between 5,000 to 100,000 baht for imported electric cars and motorcycles. Import duties and excise tax are also reduced.
EV makers joining EV3.5 are required to produce EVs domestically from 2026.
According to the OIE, the number of registered battery EVs during the first 11 months of this year was 67,056 units, a year-on-year increase of 690% from 8,483 units in 2024.
Thailand has the potential to become the largest EV market in Asean, said Mrs Warawan.
The Thai Industrial Standards Institute was asked to support the EV industry by applying new certification procedures for products in the EV segment, said Industry Minister Pimphattra Wichaikul after chairing a recent meeting of the National EV Policy Committee.
"The committee asked state agencies to come up with ideas to further support EV development in Thailand," she said.
The government also wants to promote the recycling of EV batteries under the circular economy concept, using them in energy storage system and cloud service industries.
"The Department of Primary Industry and Mines has been asked to conduct a feasibility study on this issue," said Ms Pimphattra.