Consumers who buy electric vehicles this month will be eligible for the current higher subsidies as long as the vehicles are registered by the end of January, the cabinet decided on Tuesday.
Starting on Jan 1 and running until the end of 2027, subsidies for EVs will be reduced from the current range of 70,000 to 150,000 baht per unit to between 50,000 and 100,000 baht.
However, in order to accommodate an expected rush of purchases in December, which may take dealers more time to deliver, the cabinet said higher subsidies would apply to vehicles registered up until Jan 31.
All told, the cabinet has approved a budget of 41 billion baht to support EV production and purchases, deputy government spokesman Rudklao Suwankiri said.
Of the total budget, 34.1 billion baht is for the new EV 3.5 programme from 2024-27 and comes from the government’s central budget. Another 7.12 billion supports the extension of the EV 3 programme, scheduled to end on Dec 31 this year.
Narit Therdsteerasukdi, secretary-general of the Board of Investment, said the BoI would collaborate with other agencies including the Excise Department, the Customs Department, the Industry Ministry and the Energy Ministry in explaining the details of EV3.5 and investment promotion measures to upgrade the automotive industry.
“The EV3.5 measures underscore the government’s commitment to supporting the EV industry, positioning Thailand as a hub for EVs in the region,” said Mr Narit.
Foreign EV makers will be eligible to receive up to 40% cuts on import duties and a reduced excise tax rate of 2% for completely built electric cars brought into Thailand in 2024 and 2025, said Mr Narit. In return, they will have to manufacture EVs locally by 2027.
Authorities say the tax breaks will make EVs cheaper to import and manufacture, leading to lower prices in the local market and reducing the need for high subsidies for buyers.
“The measures will encourage additional investments in the local EV industry and support existing businesses to transition to EVs and attract new automotive companies to establish production bases in the country.
“The BoI, in collaboration with relevant agencies, will actively drive these efforts to ensure Thailand achieves its zero-emission vehicles (ZEVs) goal, producing at least 30% ZEVs out of total vehicle production by 2030. This includes maintaining leadership in the automotive sector in Asean and globally, supporting the country’s targets to reduce greenhouse gas emissions and move towards carbon neutrality by 2050.”
Mr Narit said the new measures would provide government incentives for producers and purchasers of electric cars, pickups and motorcycles.
The benefits consist of three parts: financial incentives for purchasers, reduction of import duties for fully assembled cars, and reduction of excise tax.
The subsidies for EV buyers will be based on the type of vehicle and the size of the battery.
Under the EV3.5 programme, the Excise Department forecasts 830,000 EVs will receive support over the four-year period: 454,000 electric cars, 346,000 electric motorcycles and 30,000 electric trucks.