Thailand recently held the first meeting of the 2024 National Electric Vehicle Policy Committee, and released new measures to support the development of electric commercial vehicles such as electric trucks and electric buses to help Thailand achieve carbon neutrality as soon as possible. Under the new initiative, the Thai government will support eligible electric vehicle-related enterprises through tax relief measures. From the effective date of the policy until the end of 2025, enterprises that purchase electric commercial vehicles produced or assembled in Thailand can enjoy a tax reduction of twice the actual price of the vehicle, and there is no limit on the price of the vehicle; Enterprises that purchase imported electric commercial vehicles can also enjoy a tax reduction of 1.5 times the actual price of the vehicle.
"The new measures are mainly aimed at large commercial vehicles such as electric trucks and electric buses to encourage companies to achieve net zero emissions." Nali Tessatilasha, secretary general of the Thai Investment Promotion Board, said that this will further strengthen the construction of Thailand's electric vehicle ecosystem and consolidate Thailand's position as a Southeast Asian electric vehicle manufacturing center.
The meeting approved a series of investment promotion measures to support the construction of electric vehicle energy storage systems, such as providing subsidies for battery manufacturing companies that meet standards, in order to attract more battery manufacturers with advanced technology to invest in Thailand. The new initiative also supplements and adjusts the new stage of electric vehicle development incentives. For example, the scope of electric vehicles eligible for car purchase subsidies will be expanded to passenger cars with a passenger capacity of no more than 10 people, and subsidies will be given to eligible electric motorcycles.
Thailand's current electric vehicle incentive, released in the fourth quarter of 2023, will provide buyers of electric vehicles in 2024-2027 up to 100,000 baht ($1 about 36 baht) per vehicle purchase subsidy. In order to achieve the goal of electric vehicles accounting for 30% of Thailand's vehicle production by 2030, according to the incentives, the Thai government will waive vehicle import duties and excise taxes for eligible foreign automakers during 2024-2025, while requiring them to produce a certain number of electric vehicles locally in Thailand. Thai media predicts that from 2023 to 2024, Thailand's electric vehicle imports will reach 175,000, which is expected to further stimulate domestic electric vehicle production, and Thailand is expected to produce 350,000 to 525,000 electric vehicles by the end of 2026.
In recent years, Thailand has continued to introduce measures to encourage the development of electric vehicles and achieved certain results. In 2023, more than 76,000 pure electric vehicles were newly registered in Thailand, a significant increase from 9,678 in 2022. In the whole year of 2023, the number of new registrations of various types of electric vehicles in Thailand exceeded 100,000, an increase of 380%. Krysta Utamot, president of the Electric Vehicle Association of Thailand, said that in 2024, electric vehicle sales in Thailand are expected to rise further, with registrations likely to reach 150,000 units.
In recent years, many Chinese car companies have invested in Thailand to set up factories, and Chinese electric vehicles have become a new choice for Thai consumers to buy cars. According to statistics, in 2023, Chinese brand electric vehicle sales accounted for 80% of Thailand's electric vehicle market share, and the three most popular electric vehicle brands in Thailand are from China, respectively, BYD, SAIC MG and Nezha. Jiang Sa, president of the Thai Automotive Research Institute, said that in recent years, Chinese electric vehicles have become increasingly popular in the Thai market, improving the popularity of electric vehicles, and Chinese car companies invested in Thailand have also brought supporting industries such as batteries, driving the construction of the electric vehicle industry chain, which will help Thailand become the leading electric vehicle market in ASEAN. (People's Forum website)
Post time: Mar-06-2024