Thailand eyes old-car trade-in scheme to boost EV sales

Thailand is preparing to revive its “old car for new car” scheme in a fresh push to accelerate the shift towards cleaner vehicles, reduce PM2.5 pollution and support the country’s electric vehicle market.

The Excise Department is working on a conceptual framework for the scheme, which would allow owners of older vehicles to trade them in for the right to buy new EVs or hybrid vehicles under special incentives.

Pornchai Thiraveja, director-general of the Excise Department, said the agency is preparing details of the framework for submission to Ekniti Nitithanprapas, Deputy Prime Minister and Finance Minister, in mid-May 2026.

The initial target is expected to cover around 20,000 vehicles.

The scheme is being designed to support Thailand’s transition to cleaner mobility, address energy challenges and encourage more drivers to switch to lower-emission vehicles.

Officials are considering four key factors before finalising the programme.

• The first is whether carmakers have enough production capacity to meet additional demand.
• The second is the appropriate quota for vehicles under the scheme, to avoid market distortion or unfair competition.
• The third is how old vehicles submitted under the programme would be disposed of or recycled in an environmentally responsible way.
• The fourth is the type of new vehicles eligible for the scheme. The programme is not expected to be limited to fully electric vehicles, but could also include hybrid electric vehicles and plug-in hybrid electric vehicles.

One of the key conditions under review is the age of vehicles eligible for trade-in. Initial discussions point to vehicles aged 10 years or older, though final details will depend on battery-size criteria and the budget available to support the scheme.

The Transport Ministry is also preparing to support the programme by encouraging about 27,000 diesel taxis to join the old-car trade-in scheme.

Siripong Angkasakulkiat, Deputy Transport Minister, is pushing for measures to cut annual vehicle tax by up to 80% for newly registered EVs and hybrid vehicles.

The measure is aimed at encouraging taxi operators to replace diesel vehicles with cleaner alternatives, while supporting Thailand’s goal of pushing EV registrations beyond 300,000 vehicles this year.

The final details are expected to become clearer in mid-May. For motorists planning to buy a new car, the scheme could offer significant discounts and tax benefits if the eligibility conditions match their vehicle type and purchase plan.