EV3.5 campaign will cost another 7 billion baht: Excise Dept
The Excise Department is seeking another 7 billion baht for its EV3.5 promotion introduced to establish a strong electric vehicle (EV) industry in Thailand by 2030.
Ekniti Nitithanprapas, the department’s director-general, explained on Monday that 7 billion baht has been spent so far offering subsidies on 40,000 EVs, adding that the measure will cost double that amount once approved by the Cabinet.
He added that the measure has shown good results as 30 automakers have applied for subsidies. The department grants up to 100,000 baht in subsidy for every EV imported, provided the automaker produces the same number domestically.
Automakers have so far invested 40 billion baht on setting up production bases in Thailand, he said, adding that they are expected to produce up to 90,000 vehicles locally this year. Next year, the ratio for imported EVs to locally produced ones will be changed to 1:1.5, he said.
However, Ekniti confirmed that subsidies for imported EVs will reduce gradually to 75,000 baht per vehicle in 2024 and 50,000 baht in 2027. He said this reduction aims to maintain the momentum of Thailand’s EV industry development.
Battery manufacturers, meanwhile, have invested 25 billion baht to set up factories in Thailand, he said.
EV component manufacturers, meanwhile, plan to invest 5 billion baht for setting up factories for items like battery management systems, motors and gears, Ekniti added.
“Though the revenue from EV tax collection will drop due to this measure, Thailand will benefit in the long run with a new automobile production base,” he said.
