The state tax exemption for companies buying commercial electric vehicles should promote EV usage, but more measures are needed to speed up the transition to eco-friendly vehicles, say companies in the sector.
Approved by the cabinet in late March, the exemption on corporate income tax applies to entrepreneurs investing in electric trucks and buses, both imported and assembled locally.
The measure runs until Dec 31 this year.
"This measure is for large vehicles used for commercial purposes," said Peerapatr Sirichantaropart, chief executive of Sharge Management Co, a provider of charging systems for battery-powered vehicles.
The government previously granted EV incentives, including tax cuts and subsidies for imported EVs, mostly for passenger cars, with EV manufacturers required to build assembly plants here.
The new tax exemption is expected to increase commercial EV sales, bolstering the assembly of battery-run vehicles in the heavy-duty truck category, said Mr Peerapatr.
The measure is also a business opportunity for Chinese EV makers to consider expanding their businesses into Thailand, he said.
Under the "30@30" policy, Thailand expects EVs to represent at least 30% of total auto production by 2030, with 725,000 zero-emission cars, 675,000 electric motorcycles and 34,000 electric buses and trucks.
"The new measure should nudge companies towards shifting to electric trucks from diesel and compressed natural gas-powered trucks," said Mr Peerapatr.
Elenergy, a local distributor of battery-powered tractors made by China's Geely Automobile, welcomed the tax exemption, but would like more government measures.
Officials should consider adjusting the time for electric trucks to run on roads, said Anyarin Rojpatranun, co-founder and chief executive of Elenergy.
Large trucks are only allowed to use roads at certain times to avoid traffic congestion, but this regulation can be a hindrance to companies considering buying electric trucks, she said.
Battery-run trucks take several hours to recharge, meaning they will have even less time on roads to transport goods under this law, said Ms Anyarin.
Commercial EV operators should also be allowed to join carbon credit trading as their use of the technology helps cut carbon dioxide emissions, she said.
This measure can be another incentive encouraging companies to shift to commercial EVs, as the vehicles can help them earn revenue, said Ms Anyarin.
Charging large vehicles is time-consuming, so the number of charging outlets must be sufficient to serve demand, she said.
"To achieve the country's EV goals, policymakers should think of the whole EV ecosystem. Tax exemption is just one measure," said Ms Anyarin.