EV board extends EV vehicle subsidies for buyers for four more years

Deputy government spokeswoman Radklao Inthawong Suwankiri said the package, which is called EV 3.5 promotion measures, was approved at the EV board meeting held at the Thai Ku Fah Building inside Government House at 1.30pm on Wednesday.

Radklao said the EV board also resolved to have the Excise Department extend the period of the first phase, or EV 3.0 package, from December 31 this year to January 31 next year.

Initially, EV buyers under the EV3.0 package were required to register their EV vehicles by December 31. The extension allows them to buy new EVs by December 31 and register before January 31, 2024 to benefit from the Thailand International Motor Expo in December, Radklao added.

The EV3.5 package, which will be enforced from 2024 to 2027, includes:

- A subsidy of 50,000 to 100,000 baht for an EV vehicle with retail price not more than 2 million baht and using a battery of at least 50 kWh capacity

- A subsidy of 20,000 to 50,000 baht for an EV vehicle using battery with capacity less than 50 kWh

- A subsidy of 50,000 to 100,000 baht for an EV pickup costing not more than 2 million baht and battery with at least 50 kWh capacity

- A subsidy of 5,000 to 10,000 baht for an EV motorcycle costing not more than 150,000 baht and battery with capacity of at least 3kWh

The EV3.5 package will also reduce cap import tariff at 40% for importing CBU [completely built unit] EV vehicles during the first two years of the package’s enforcement, in 2024 and 2025.

If the imported EVs have a price tag not exceeding 2 million baht, their excise tax will be reduced from 8% to 2%.

But the importers must invest in the country and manufacture EVs to compensate the imported ones at the ratio of two locally made EVs for each imported one, within 2026. The ratio will rise to three locally-made vehicles per imported one in 2027.

Radklao said the EV board also made it mandatory that batteries of imported and locally-made EVs must receive standard endorsement by the Automotive and Tyre Testing, Research and Innovation Centre.

The spokeswoman said the EV board also discussed and attached importance to the policy to make Thailand an EV hub under the policy called "30@30", which aims at manufacturing zero emission vehicles at the rate of 30% of all vehicles made in the country by 2030.

The board estimates that by 2030, 725,000 BEVs and 675,000 electric motorcycles will be made in the country.

She quoted Prime Minister Srettha Thavisin as telling the board during the meeting that Thailand would ensure the ICE (internal combustion engine) industry gradually transforms into EV industry.

Srettha said the current EV adoption among buyers was high, which boded well for EV industries so the government must continue to support the EV industries.

The prime minster told the meeting that the government would support knowledge development related to EV industries for Thais. Educational institutions must be encouraged to support EV knowledge development.

The government also aims to turn Thailand into a complete hub — development, manufacturing, reusing, and recycling of EVs.

The EV board must also take care of measures for recycling EV batteries to ensure care throughout the life cycle of the EVS, or from “cradle to grave”, the spokeswoman quoted Srettha as saying.