Incentives For Electric Vehicles Production In Thailand

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Thailand is not only Southeast Asia’s biggest car producer currently but also it’s aiming to become the region’s number one manufacturer of electric vehicles. Thailand wants to be at the forefront as the world is increasingly making the switch to cleaner cars as it aims to promote renewable energy. Though the popularity of electric vehicles (EVs) is still low in Thailand, the country is moving towards the production of more fuel-efficient vehicles. 

Thai nationals are now motivated to buy an electric car due to the improved regulations such as subsidies and tax rebates. The earlier EVs are a great option for a used car as they are cheaper than a new one.

A used electric car has endured less wear and tear, therefore, they tend to be driven fewer miles than the norm. Even at today’s gasoline prices, an electric car is cheaper to run than conventionally powered models.

The Thai government is attracting and promoting foreign manufacturers to use Thailand as a base for the production of green vehicles as the global demand for them is growing. There are generous tax incentives offered by Thailand’s Board of Investment (BOI), to both the auto parts and auto manufacturing industry in the country. The number of electric vehicles (EVs) is projected to rise to at least 35 percent, internationally.

Incentives for NGV vehicle

In Thailand, fuel-efficient transportation through the natural gas vehicle (NGV) initiative is highly supported by the Ministry of Energy. This initiative includes:

  • a 10% reduction of import duty on NGV control system components and parts 
  • Natural gas subsidization
  • A 10% reduction of import duty on NGV tanks
  • Natural gas-powered taxi cabs introduction of over 10,000

Incentives for EV vehicle production

Four types of EVs have been developed in the world namely; hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) being the first two of which systems are electricity-petrol and electricity-diesel respectively.

The fuel-cell electric vehicle (FCVs) and battery-powered electric vehicles (BEVs) are the latest models of EVs available and are all fuelled purely by electricity. The Nissan X-Trail, Toyota Camry, and Honda Accord are the three locally assembled models in Thailand that use HEV.

To have charging stations operating across the country, which will boost the number of electric cars soon, is Thailand’s main aim. The Thai government announced changes in excise tax rates to encourage EVs which are now offered at 2%. Depending on their emission levels, the tax rates for PHEVs and hybrids have been reduced too.

The Thai government has also recognized 10 components eligible for eight-year CIT holidays to boost the component industry. These include; traction motors, portable electric vehicle chargers, batteries, DC/DC converters, portable electrical circuit breakers, inverters, EV smart charging systems, and battery management services. 

Incentives for E85

The import duties of foreign auto parts used to make E85-ready vehicles have a three-year exemption, (15 percent gasoline, 85 percent ethanol), offered by the Ministry of Finance. Also, depending on the engine size, Thailand’s Ministry of Finance has reduced the excise tax on cars using E85 to 22, 27, and 32 percent.

Also Read: 5 Automobile Advancements that Happened in the Last Few Years