EV Board to urge new govt to pass EV 3.5 package
The National Electric Vehicle Policy Board (EV Board) will be urging the new government to pass the EV 3.5 package, which includes providing discounts for imported electric vehicles (EVs), establishing EV manufacturing plants, as well as offering incentives to stimulate investment in EV battery production facilities. It is due to come into effect on January 1, 2024.
Permanent secretary to the Industry Ministry and secretary of the EV Board, Nattapol Rangsitpol, said that once the new government is formed, the Board will wait for clear instructions on whether the board’s structure will be changed.
If the current structure remains, the board will propose the EV 3.5 measures to the Cabinet for approval. The new measures will expand and enhance the existing EV 3.0 package, which focuses on providing discounts for imported EVs and setting manufacturing targets for EVs only. The EV 3.0 measures, which provide a maximum discount of 150,000 baht per vehicle for buyers, requiring car manufacturers to produce a corresponding number of vehicles locally to compensate for the imports, are set to expire this year. Additional measures include the promotion of investment in electric vehicles and components, the establishment of standards for electric vehicles and components, the setting up of national automotive and tyre testing centres, and the installation of charging stations in public areas.
To promote Thailand as a regional EV production hub and achieve the target of producing 30% of EVs within the country by 2030, the Thai automotive industry needs to undergo significant transformations and embrace existing strengths to propel innovation, Nattapol said.
Both the public and private sectors have been actively involved in research and development in the Thai automotive industry, fostering close collaboration between entrepreneurs and researchers.
This cooperation serves as a critical starting point for joint development and the advancement of Thailand's automotive technology in the future, especially, as seems likely, other countries in the Asean region declare themselves as EV hubs.
Under the EV 3.5 measures, the government will provide subsidies of approximately 100,000 baht per vehicle for imported EVs and require car manufacturers to establish EV manufacturing plants in Thailand at a ratio of 2-3 times the number of imports.
Overall, the benefits and privileges under the EV 3.5 measures will be slightly less than those under the EV 3.0 package to maintain fairness with manufacturers who have already been benefitting from the previous measures. The aim is to motivate brands that have not yet participated in the EV 3.0 package, particularly European brands, which are expected to receive attention as the EV market in the country continues to grow significantly, with hundreds of percent of monthly growth. It is expected that this year the number of registered EVs with red license plates will reach as many as 60,000 vehicles.
