Thailand’s EV policy for 2024-2027 – Industry News 2311

Nov 16, 2023 | Industry News


Thailand’s EV policy

will effectively boost the number of electric vehicles (EV) within the country, thereby promoting the development of the EV charging industry.

Thailand's EV policy

Thailand’s EV policy

According to the new policy, starting from 2024 until 2027, the Thai government will provide a subsidy of up to 100,000 Thai Baht (approximately $2,857) per EV (Electric Vehicle) for consumers who purchase new energy vehicles. From 2024 to 2025, the import tariff on new energy vehicles with a price not exceeding 2 million Thai Baht will be reduced by 40%. The consumption tax on imported new energy vehicles with a price not exceeding 7 million Thai Baht will also be lowered from 8% to 2%. EV manufacturers benefiting from this preferential treatment are required to produce twice the amount of their exported new energy vehicles in Thailand by 2026 and triple that amount through local production in 2027.

The Ministry of Industry in Thailand has announced that the new measures aim to attract more foreign automobile manufacturers to invest in the field of EVs. In the future, additional policies will be implemented to encourage domestic EV manufacturers in Thailand to actively engage in research and development as well as production of EVs, while also supporting collaboration among various sectors.

Additional Information

Effects of policy

According to the information, the Thai government’s announcement of the second phase policy aims to sustain the country’s thriving EV industry.
The first phase policy is set to expire on December 31, 2023, and its main measures include import tax exemptions for EVs and subsidies of up to 150,000 Thai Baht per vehicle for consumers purchasing such cars.

Due to the strong appeal of these purchase subsidies for consumers, the initial budget of 2.923 billion Thai Baht approved for this policy has been fully utilized. Since the implementation of the first phase policy in 2022, a total of 15 companies from 13 automotive brands have greatly benefited from it, significantly boosting Thailand’s EV industry development.

Data shows that during the first nine months of 2023, over 50,000 EVs were registered in Thailand which represents a remarkable increase compared to the same period last year (7.6 times higher).

The Chairman of the Electric Vehicle Association of Thailand stated that the implementation of subsidy policies and exemption from import taxes would help further boost sales of EVs in Thailand.

Ongoing impact

Recently, the Thai government has also required various government departments to replace their aging fleets with EVs or directly purchase a batch of EVs for official use. Deputy Spokesperson for the Prime Minister’s Office expressed that the Thai government supports the popularization of EVs and all departments will collaborate to promote the development of the EV industry in order to achieve sustainable development and energy conservation goals in Thailand.

Local companies in Thailand have actively responded by promoting the development of EVs. Grab Thailand, a Southeast Asian ride-hailing and food delivery platform, recently announced its “Grab EV” initiative which encourages registered drivers and riders to use electric cars and motorcycles for transportation and delivery services in collaboration with partners including BYD. The goal of this initiative is to increase the proportion of new energy vehicles on Grab’s platform in Thailand to 10% by 2026.



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