New EV policy would maintain and increase level of sales: BOI
Thailand’s Board of Investment (BOI) is planning to propose to the new government that it implements measures to promote the purchase and manufacturing of electric vehicles (EVs) in Thailand under the EV 3.5 policy until 2025.
BOI secretary-general Narit Therdsteerasukdi said on Wednesday that the EV 3.5 policy would help maintain the momentum of EVs in the automotive market which has been growing thanks to the previous EV 3.0 policy.
The EV 3.0 policy, which exempts taxes for EV importers and provides subsidies for purchasing electric vehicles at a maximum of 150,000 baht per vehicle, is set to expire on December 31, 2023.
However, the funding for EV purchase subsidies will end this September due to increased public interest in electric vehicle purchases, leading to the depletion of the support funds before the end of this year.
Narit said the BOI has discussed the details of the EV 3.5 policy with the National Electric Vehicle Policy Board (EV Board). These largely focus on providing discounts for imported CBU (complete built-up) electric vehicles and setting manufacturing targets for EVs in Thailand.
He said that under the EV 3.5 policy, the government would provide subsidies of approximately 100,000 baht per vehicle for imported EVs from 2024-2025, while car manufacturers would be required to establish EV manufacturing plants in Thailand at a ratio of 2-3 times the number of imports from 2026-2027.
Narit estimates that the EV 3.5 policy will be finalised around November to December, and the new government could implement it from January 2024.
According to the Electric Vehicle Association of Thailand (EVAT), some 37,000 electric vehicles have been registered in Thailand in the first seven months of this year. This number is already far higher than in 2022, which saw some 9,600 registrations.
The association expects purchases to continue to rise until the end of the year despite the lack of an EV purchasing subsidy, as importers are still enjoying tax exemptions and fuel prices continue to rise.
“Furthermore, as Thais have become more familiar with EV technology, new buyers will have fewer concerns and that will make their decision easier,” EVAT president Krisada Utamote said.