EV

Chatrudee Theparat

The government will provide a central budget 24 billion baht in the fiscal 2024 to subsidize the EV battery manufacturing

A national committee on electronic vehicle policy (EV board) yesterday agreed to provide 24 billion baht to subsidize the electrical vehicle-battery cells manufacturing. The board agreed that the government may provide a 24 billion baht of the central budget in the 2024 fiscal year to subsidize the manufacturing.

Also, the government may establish a fund to subsidize the EV-battery cells production.

Deputy Prime Minister Supattanapong Punmeechaow and chairman of the EV board said there are big companies to show their intention to manufacture battery because the government’s incentive package to promote EVs helps create more confidence among foreign investors.

Under the policies, EVs are expected to account for 30% of the domestic car production or 750,000 units a year in 2030, that would work out to 725,000 electric passenger cars and pickup trucks and 675,000 electric motorcycles, and related policy to encourage demand and supply.

Deputy prime minister Supattanapong Punmeechaow and chairman of the EV board

Mr Supattanapong said a producer of EV battery with less than 8-gigawatt hours (GWh) capacity will receive a subsidy of between 400 baht and 600 baht per kilowatt hour (kWh), while a factory making an EV battery of more than 8 GWh will receive between 600 baht and 800 baht per kWh.

He said the EV Board also agreed in principle to lower the excise tax on EV batteries from the current 8% to 1%. The package will be proposed the cabinet soon and take effective within this term of the government.

Expert in EV board and former CEO and president of the PTT oil and gas company, Pailin Chuchottaworn said the government’s EV promotion policy can draw foreign direction investment to Thailand and help strengthen Thailand’s ambition to be Detroit of Asia, leading to convince EV parts producers of chip and electronics to move to Thailand.

Sanan Angubolkul, chairman of the Thai Chamber of Commerce, said domestic battery-cells production can help reduce EVs price and drive faster EV production. However, the government should accelerate to issue safety standards of modified combustion vehicle to EVs.