MOF seeks budget to support EV subsidies pending new govt
With the available funding for EV subsidies soon to be exhausted, the Finance Ministry plans to propose a supplementary budget to the Cabinet for approval while Thailand awaits the formation of a new government.
This additional funding aims to further promote electric vehicle measures, in line with the EV 3.0 policy, which provides subsidies for purchasing electric vehicles at a maximum of 150,000 baht per vehicle.
If the Cabinet approves the proposal, it will be forwarded to the Election Commission (EC) for authorisation. The likelihood of approval is high since these measures are part of an ongoing policy.
The electric vehicle market in Thailand has been expanding consistently, particularly since the government implemented measures to subsidise EV prices for both electric bikes and electric cars. The registration numbers for electric cars have seen a significant increase, with Battery Electric Vehicles (BEVs) registering 43,045 units, a growth of 487.65% compared to the same period last year. Hybrid Electric Vehicles (HEVs) increased by 41.02%, with 46,140 units, and Plug-in Hybrid Electric Vehicles (PHEVs) increased by 5.46%, totaling 6,272 units during the January-June 2023.
The support budget for 2024 of an estimated 3 billion baht is under consideration pending evaluation of the number of vehicles and companies participating in the scheme. Initially, approval will be sought during the caretaker government period, with at least 1 billion baht allocated for support in the fourth quarter of this year.
The EV 3.0 measures are set to expire on December 31, 2023, but the funding for EV purchase subsidies will end this September due to increased public interest in electric vehicle purchases, leading to the depletion of the support funds before the end of this year.
