Transport Ministry seeks up to 20bn baht from loan decree for EV shift

The Transport Ministry will ask the Finance Ministry to allocate 10-20 billion baht from the government’s 400-billion-baht borrowing decree to help public transport and freight operators replace ageing vehicles with electric vehicles.

Deputy Transport Minister Siripong Angkasakulkiat said the ministry would hold talks with the Finance Ministry this week on measures to support operators in switching from internal combustion engine vehicles to EVs.

The proposed support would build on the government’s “old car trade-in for new car” scheme, but could go further by helping operators buy or lease electric vehicles.

Seven transport groups targeted

Siripong said the assistance would cover seven groups of transport operators: taxis, fixed-route passenger vans, buses, songthaews, private hire vehicles carrying no more than seven passengers, tuk-tuks and motorcycle taxis, as well as goods trucks.

The scheme would target operators whose vehicle licences are nearing expiry and who are required to replace their vehicles.

He said the Department of Land Transport had compiled data on public transport vehicles in these categories and found that around 100,000 vehicles were approaching the end of their permitted service life.

Under existing rules, these operators must replace their vehicles before continuing to provide services, giving the government an opportunity to accelerate the shift to EVs.

Subsidy options include down payments and soft loans

The ministry is considering several forms of support beyond the old-for-new trade-in model.

These could include subsidies for down payments, special low-interest financing, leasing support, or a co-payment scheme in which the government shares part of the cost with operators.

Siripong said the initial subsidy requirement was estimated at around 10-20 billion baht.

Loan decree could fund transport-sector transition

The proposed funding would come from the 400-billion-baht borrowing decree, which the government has framed as a mechanism to address the energy crisis and support Thailand’s energy transition.

If approved, the transport-sector package would make EV adoption one of the key economic uses of the borrowing framework, linking public assistance with longer-term energy and transport reform.

The measure would also provide direct support to transport operators facing the cost of replacing ageing vehicles while helping reduce fuel dependence in the public transport and logistics sectors.

Annual vehicle tax cut planned for EVs and hybrids

Siripong said the Department of Land Transport was also preparing tax incentives for newly registered EVs and hybrid vehicles.

The department is considering an 80% reduction in the annual vehicle tax, or possibly waiving the fee entirely, to encourage wider EV adoption.

The ministry expects the measures to help push new EV registrations this year above 300,000 units. Cumulative EV registrations nationwide currently stand at 435,630 vehicles.