To propose the cabinet this month for a subsidy rate for EV cars

Chatrudee Theparat

To propose the cabinet this month for a subsidy rate for EV cars

The National EV Policy Board will propose the cabinet by this month to approve a new subsidy rate for electric vehicles.

Mr. Narit Therdsteerasukdi, the secretary general of the Board of Investment (BoI) and the executive committee secretariat of the National EV Policy Board said the relevant agencies will discuss further to stipulate the subsidy rate as appropriate, and a schedule to propose the cabinet’s approval by this month.

The National EV Policy Board yesterday chaired by Mr. Srettha Thavisin, the Prime Minister gave a green light for EV 3.5 package and approved in principle for ranging subsidy rate.

The government will provide subsidies for the purchase of electric cars, electric pickup trucks, and electric motorcycles based on the vehicle types and battery capacities.

The subsidies will be provided in range including for electric passenger cars priced not exceeding 2 million baht, with battery capacity not less than 50 kWh will be subsidized in range between 50,000- 100,000 baht per unit. And those with battery capacity less than 50 kWh will be subsidized 20,000-50,000 baht per unit.

For electric pickup trucks priced not exceeding 2 million baht, with battery capacity not less than 50 kWh will be subsidized in range between 50,000- 100,000 baht per unit.

For electric motorcycles cars priced not exceeding 150,000 baht, with battery capacity not less than 3 kWh will be subsidized in range between 5,000-10,000 baht per unit.

Mr Narit have signaled that consumer subsidies would be scaled back from the current range of 70,000 to 150,000 baht per unit to between 50,000 and 100,000 baht.

The EV Board is positioning Thailand as the key regional hub for electric vehicle manufacturing while the EV Board has approved the support measures for the second phase of EV promotion (EV 3.5) for 2024 - 2027.

 “To achieve the 30@30 goal, Thailand is positioned to become the electric vehicle manufacturing hub in the region. The premier continued the commitment to propel Thailand into a prominent regional hub for EV manufacturing aligning closely with the 30@30 policy. Thailand aspires to manufacture Zero Emission Vehicles (ZEVs) at least 30% of the total motor vehicle production by the year 2030, or 725,000 cars and 675,000 motorcycles.”

The second phase of EV package is aimed to promote EV industry’s continuous growth and to facilitate investment opportunities in EV manufacturing in Thailand for new players.

The package aims to support investment covering the entire EV industry ecosystem. Companies who have already participated in EV 3 are eligible to apply these measures complying with the conditions and regulations.

As part of the EV 3.5 package, those electrical passenger cars priced not exceeding 7 million baht will incentivized with the reduction of excise tax from 8% to 2%. While electrical passenger cars priced not exceeding 2 million baht, importing EVs as Completely Built-Up Units (CBUs) during the first two years (2024-2025) will benefit additionally a reduction in import duties up to 40%. Those companies applying to this package will be contingent on the condition of EV production offset domestically for CBUs imported at 1:2 ratio by 2026 and 1:3 by 2027. Both imported and domestically manufactured electric cars, the batteries must acquire the Industrial Product Standards (TIS) and pass testing based on international standards at the Automotive and Tire Testing National Center (ATTRIC).

In addition, the board has approved an extension deadline for EV registration under EV 3 package from December 31, 2023, to January 31, 2024 in order to enable consumers planning to purchase EVs at the Thailand International Motor Expo and to complete the registration process.