New incentives expected to electrify Thailand’s auto industry
The Finance Ministry is launching new measures to support Thailand’s bid to become a regional electric vehicle (EV) manufacturing hub.
The National Electric Vehicle Policy Committee aims to boost Thailand’s EV production to 30 per cent by 2025 and 100 per cent by 2035.
The aim is to manufacture 1.05 million electric vehicles or 30 per cent of total cars produced locally by 2025 and push that up to 50 per cent in five years.
The Finance Ministry said measures to support the EV industry will be launched on January 1, and should significantly bring down the price of electric cars so more people are tempted to switch. The measures will also attract investment in infrastructure, especially charging stations.
The measures are expected to include both tax and non-tax benefits such as a reduction in annual car tax, drop in toll fees and parking fees for EVs.
The current vehicle tax structure is based on engine power and carbon dioxide emission rate and is divided into two types – hybrid engine vehicles (HEVs) and battery electric vehicles (BEVs).
An HEV passenger car with an engine below 3,000cc is subject to 4 per cent until 2025, after which it will rise to 8 per cent. HEV cars with engines higher than 3,000cc are subject to 16-26 per cent tax, which has been halved until 2025.
Meanwhile, no tax is being paid for BEVs from 2018 to 2022, after which it will rise to 2 per cent from 2023 to 2025.
Imported EVs are subject to 80 per cent tax from the appraisal price except for cars imported under the Asean-China free-trade agreement. Thailand has been importing EVs under the MG and Great Wall Motors marque from China, though no deals have been made with Japanese automakers so far.
This year 2,133 EVs have been imported, slightly less than 2,177 units imported last year. Of the imports, 54 per cent came from China, far less than the 91 per cent imported in 2020.