BANGKOK: The Cabinet on Tuesday (February 15) approved an incentive package including tax cuts and subsidies to promote the consumption and production of electric vehicles (EVs) between 2022 and 2023.
Electric vehicles are showcased at a Bangkok International Motor Show. Photo: Patipat Janthong/Bangkok Post
Subsidies range from B70,000 to B150,000 depending on vehicle type and model, while excise duties and import duties will be reduced on completely demolished and completely built-up units, reports the Bangkok Post.
According to government spokesperson Thanakorn Wangboonkongchana, the cabinet approved measures to promote domestic manufacturing of electric vehicles, including waiving import duties on major electric parts between 2022 and 2025.
Important electrical parts include batteries, traction motors, compressors for battery electric vehicles, battery management systems, drive control units and gearboxes.
“The incentives offered for the first two years in 2022-2023 covering imported cars and motorcycles are aimed at stimulating wider and faster use of electric vehicles in the country,” Mr Thanakorn said.
“From 2024 to 2025, the government will mainly focus on promoting the use of domestically produced electric vehicles.”
The government wants Thailand to become a global hub for the production of electric vehicles and parts, as well as the use of zero-emission vehicles of all types, he said.
The country wants the manufacture of domestic electric vehicles to represent at least 30% of total national production in 2030, or 725,000 units per year.
According to Mr Thanakorn, the Cabinet has also approved 3 billion baht from the central budget in the 2022 financial year to fund the grant schemes.
In addition, the cabinet agreed in principle to provide a budget of 40 billion baht between fiscal year 2023 and 2025 to promote the consumption of electric vehicles.
The Electric Vehicle Association of Thailand (EVAT) hailed the government’s electric vehicle incentive scheme, saying it was a good start to develop the nascent industry in Thailand, to benefit automakers and buyers.
Subsidies and lower excise duties for electric vehicles will help potential car buyers make a decision on their purchases more easily, said EVAT Chairman Krisda Utamote.
“EVAT is pleased with the government’s decision to promote the electric vehicle industry through this package,” he said.
“We expect the industry to leapfrog from here.”
The package is designed to ensure that global automakers in Thailand feel they can share the same benefits from the state’s electric vehicle promotion, Mr Thanakorn said.
Previously, many automakers feared that Chinese automakers would rack up most of the advantages in the auto industry, as China and Thailand signed a free trade agreement that grants no import rights on auto components. generals from China.
Japan also gets a 20% reduction in import duties under the Japan-Thailand Economic Partnership Agreement, while South Korea gets a 40% reduction.
“The launch of the EV incentive package will bring good feelings to all automakers as everyone gets the same benefits from the package,” Krisda said.
According to EVAT, Thailand registered 5,781 new electric vehicles for use last year, including 3,673 electric motorcycles.
Car and motorcycle manufacturers have announced plans to produce and distribute electric vehicles in line with the National Electric Vehicle Policy Committee’s announcement last March of a goal for electric vehicles to be 50% of vehicles manufactured locally by 2030, part of an ambitious plan to make Thailand a regional region. Electric vehicle production center.