Mercedes-Benz joins Thailand’s EV subsidy program
Mercedes-Benz will become the 11th vehicle manufacturer to join a government-led program to encourage production of electric vehicles (EVs) in Thailand, Excise Department director-general Ekniti Nitithanprapas said on Friday.
The German carmaker’s Thai assembling unit – Mercedes-Benz Manufacturing (Thailand) Co Ltd – will sign a memorandum of understanding with the Excise Department on government incentives for EV producers, Ekniti said.
The incentive program aims to lower the price of EVs so they can better compete against cars and motorcycles with internal combustion engines. Carmakers are entitled to subsidies and cuts on import duties of up to 150,000 baht per EV priced below 2 million baht and 700,000-800,000 baht for each one priced above 2 million.
Vehicle makers are required to sign cooperation agreements with the Excise Department to join the program. The agreements require carmakers to produce as many EVs in Thailand as they import.
Companies that have already signed such agreements include the Thai assemblers of Chinese-made EVs, including MG and GWM, as well as Japanese carmaker Toyota, and Thai EV maker Mine Mobility. Three assemblers of electric motorcycles, including Thai Honda and Deco Green, have also signed agreements.