Hybrids not likely to come under tax-break scheme for EVs

 

Somchai Harnhirun, permanent secretary of the ministry, told a seminar held by the Thailand Development Research Institute (TDRI) that the government was sticking to its policy to promote international-standard automobiles and not to pick technology winners.

“We don’t pick the winners. We want to see real investment. We won’t be giving away our taxes for free, but we want a commitment as to what they will produce in the future,” he said.

The Cabinet agreed in August to waive import tariffs on battery electric vehicles (BEVs) and grant BOI incentives to investors that set up assembly plants for BEVs and produce critical parts such as batteries and motors within five years after receiving the privileges.

Suparat Sirisuwannagkura, senior vice president of Toyota Motor Thailand, said the government should include hybrid vehicles in its promotion policy so such cars were not more than 5 per cent more expensive than pure internal-combustion-engine (ICE) vehicles. 

He said hybrid technologies shared some core technologies such as batteries and motors that producers could develop further for plug-in hybrid vehicles, BEVs and fuel-cell vehicles (FCVs) in the future. Moreover, electric vehicles still have many limitations, especially in battery technology, and automakers may eventually bypass them and leapfrog to FCVs.

TDRI researchers yesterday suggested that the government revamp the automobile-excise-tax structure to reflect emission-release levels truly and to be “technology-neutral”. This would make next-generation automobiles more competitive, increasing domestic demand for them, and make Thailand attractive as a manufacturing base for critical parts such as batteries and electric motors.

TDRI president Somkiat Tangkitvanich said that as global automotive trends were tilting towards environmentally friendly vehicles, Thailand’s traditional non-alignment of energy and industrial policies could become a stumbling block for the future of the Thai automotive industry. 

“The policy should be technology-neutral, not pre-picking the winners, and let efficient technologies be born. 

 

Charging stations 

“On EVs, we view that rolling out 100 charging stations in three years might be too fast,” said the researcher, citing the Energy Ministry’s plan.

Piengjai Kaewsuwan, vice president of Nissan Motor (Thailand), said the company was interested in joining in the BOI’s programme but the EV market would take time to grow. “Therefore, during the initial stage, the government should stimulate demand through cutting taxes to create the market first to send a signal to producers that they could begin production in the future,” she said.

Praipol Koomsup, former vice minister for energy, said some expected battery costs would be cut by half within 10 years, and that would make electric cars competitive with ICE vehicles.

“Hence, if Thailand is still |worrying about its automotive in|dustry and its hub status |and not adjusting as the world changes, it will just disappear,” he warned.