Cabinet greenlights 34-billion baht package to bolster Thailand’s EV industry
The Cabinet has earmarked 34 billion baht to subsidise the purchase of electric vehicles and reduce import tariffs, a senior official said.
Narit Therdsteerasukdi, Board of Investment secretary-general, said on Tuesday that the approval of the “EV 3.5 package” marks the second phase of subsidies and tax reductions for battery electric vehicles’ sales.
Endorsed by the National Electric Vehicle Policy Committee (EV Board) and building on the initiative of the previous administration, the package will be implemented for four years once the current package expires at the end of the year.
The new package will offer lower subsidies, ranging from 5,000 to 100,000 baht, compared to the previous range of 70,000-150,000 baht per EV.
These subsidies will apply to vehicles priced at 2 million baht or below.
For instance, an EV with a 50kWh battery could receive a subsidy of 50,000 to 100,000 baht, while those with a battery capacity lower than 50kWh may get a subsidy ranging from 20,000 to 50,000 baht.
The package also covers EV pickup trucks and motorcycles. For instance, a pickup truck with a 50kWh capacity will get a subsidy of 50,000 to 100,000 baht, while an EV motorbike priced at no more than 150,000 will get a subsidy of 5,000 to 10,000, provided its battery capacity is at least 3kWh.
The package will cut import duty by 40% for CBU EVs priced at no more than 2 million baht from next year to 2027.
It will also reduce excise tax to 2% from the current 8% for EVs priced at no more than 7 million baht.
The aim of the project is to encourage local importers to manufacture EVs locally at the ratio of 1:1 in 2024, 1:1.5 in 2025, 1:2 in 2026 and 1:3 in 2027.
The Cabinet has also extended the registration period for EVs purchased under the previous phase (EV 3.0) by a month to January 31. However, to be eligible, all purchases must be completed within this month.
