EV makers call for equal treatment in Thailand
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EV makers call for equal treatment in Thailand

Fear rises of Chinese, Japanese dominance

An electric vehicle charging outlet is shown at an Auto Show and EV Expo held at Bitec. (Photo: Wichan Charoenkiatpakul)
An electric vehicle charging outlet is shown at an Auto Show and EV Expo held at Bitec. (Photo: Wichan Charoenkiatpakul)

Car manufacturers from Europe, the US and South Korea want the Thai government to ensure its electric vehicle promotion policy is mutually beneficial to all EV makers, following concerns that rivals from China and Japan have gained the upper hand.

They are calling on authorities to better support their EV sales and automotive supply chains as Thailand fuels the growth of its domestic EV market, said Industry Minister Pimphattra Wichaikul.

"These countries want the government to take better care of them because they think Chinese and Japanese car companies have an advantage over them," she said.

Ms Pimphattra insisted the government equally supports all car companies' sales and investment through EV incentive packages, without discrimination against any firms.

She said European, American and South Korean car companies will continue to develop and invest in EV technology and production to expand their businesses.

Ms Pimphattra said she believes US automakers are interested in investing in Thailand, following the government's roadshow to encourage companies in the US to develop their businesses here.

Last month, the cabinet approved a new EV incentive package, dubbed EV3.5, to further grow the EV industry. The 34.1-billion-baht scheme covers subsidies, reduced import duties for fully assembled cars and an excise tax cut.

Car companies participating in EV3.5 spanning 2024-27 are required to start producing EVs domestically from 2026.

Chinese and Japanese car companies also benefit from other trade privileges, said Surapong Paisitpatanapong, vice-chairman of the Federation of Thai Industries (FTI) and spokesman for its Automotive Industry Club.

The Asean-China free trade agreement (FTA) supports the import of Chinese products into Thailand, while Japan has the Japan-Thailand Economic Partnership Agreement with Thailand, which supports trade and investment between the two countries, he said.

Though the government promotes equal access to EV incentive packages, companies from certain countries, especially in Europe and the US, have yet to sign FTAs with Thailand, said Mr Surapong.

The FTI often calls for accelerated trade agreement talks with Europe and the US to support trade and investment.

He said he believes more EV companies will invest in Thailand as its market is growing rapidly.

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