Global automakers are urging the government to extend Thailand’s current electric vehicle (EV) incentive package. The package, known as EV 3.0, is set to expire on December 31, and automakers are asking for an extension of at least six months. Their concern stems from the price difference between locally produced EVs and imported units. They fear that if the new incentive package, EV 3.5, is implemented while they are producing EVs for sale, their prices will be higher than those of imported EVs, especially from China.
Krisda Utamote, president of the Electric Vehicle Association of Thailand (EVAT), stressed the need to extend the current incentive package. He explained that more time would allow EV manufacturers to meet the government’s requirements and ease concerns about EV prices. The extension is seen as crucial for companies to remain competitive in the rapidly growing EV market.
The EV 3.0 incentive package, approved by the cabinet in February last year, offers subsidies ranging from 70,000 baht to 150,000 baht, depending on the type and model of vehicle. In addition, there will be lower excise taxes and import duties on fully dismantled and fully assembled units.
The proposed EV 3.5 package needs to be approved by the new National EV Policy Committee. However, Krisda expects it to offer fewer incentives than the current package. He explained that in the early stages of building the domestic EV industry, the government relied on foreign investors to drive growth. There is speculation that the maximum subsidy in the new package could be 100,000 baht.
The Ministry of Industry has shown its commitment to developing the Thai EV market, with Industry Minister Pimphattra Wichaikul pledging to expedite the passage of a new EV incentive package. The National EV Policy Committee aims for EVs to account for 50% of locally manufactured vehicles by 2030, positioning Thailand as a regional EV hub.
