The Excise Department estimates electric vehicle (EV) imports will reach 175,000 units within two years, says director-general Ekniti Nitithanprapas.
Under the four-year plan to support EVs, dubbed EV3.5 (2024-27), importers must set up a production base in the country to produce EVs to substitute for imports from 2024-25.
Roughly 350,000 to 525,000 EV units are expected to be produced domestically by 2027, with the estimated amount of subsidies under the scheme tallying 34 billion baht.
He said EV3.5 aims to encourage investment in EV production and enhance competitiveness as Thailand transitions to the EV industry, including promoting carbon neutrality and net zero emissions, in line with the Excise Department's strategy to drive sustainable growth through tax collection as well as environmental, social and governance principles.
By 2026, participants in EV3.5 have to set up a production base in Thailand and begin domestic production to offset imports at the ratio of 1:2 (for every imported EV that receives a subsidy, two units must be locally made).
The ratio increases to 1:3 by 2027.
Visitors check out the engine of an Electric Vehicle (EV) at the Fast Auto Show Thailand & EV Expo 2023. Wichan Charoenkiatpakul
EV manufacturers that want to receive the subsidy under EV3.5 are required to register with the Excise Department.
Recently three Chinese EV makers committed to setting up production facilities in Thailand, comprising Changan Auto Sales (Thailand), SAIC Motor-CP and Great Wall Motor Manufacturing (Thailand).
Participants under the EV3.5 policy receive support from the Excise Department.
EVs priced up to 2 million baht with a battery size ranging between 10 and 50 kilowatt-hours (kWh) receive subsidies of 50,000 baht per vehicle if purchased in 2024, 35,000 baht per vehicle in 2025 and 25,000 baht per vehicle during 2026-27.
A battery size of at least 50 kWh receives subsidies of 100,000 baht per vehicle if purchased in 2024, 75,000 baht per vehicle in 2025 and 50,000 baht per vehicle during 2026-27.
Mr Ekniti said import duties are reduced by up to 40% for completely built electric cars priced up to 2 million baht for the initial two years (2024-25), while the excise tax rate is cut from 8% to 2% for 2024-27.
For electric cars priced from 2-7 million baht with a battery size of at least 50 kWh, the excise tax rate is slashed from 8% to 2%.
Pickups priced up to 2 million baht with a battery size of at least 50 kWh receive subsidies of 100,000 baht per vehicle and an excise tax exemption during 2024-25, with the excise levy 2% in 2026-27.
Electric motorcycles priced below 150,000 baht with a battery size of at least 3 kWh receive subsidies of 10,000 baht per unit and an excise tax rate of 1% during 2024-27.