Thailand has given the green light to a subsidy package aimed at supporting its thriving electric vehicle (EV) industry, as the country seeks to maintain its position as the leading regional auto hub for EVs. The new package, sanctioned by the National Electric Vehicle Policy Committee, will provide subsidies of up to 100,000 baht ($2,764) per EV car. Running from next year until 2027, the scheme also encompasses reduced import duties and excise taxes to further incentivize EV adoption.
Narit Therdsteerasukdi, Secretary-General of the Thailand Board of Investment, highlighted the steady rise of EV popularity in Thailand, driven by existing government subsidies of up to 150,000 baht per car. In the second quarter, Thailand accounted for approximately half of all EV sales in Southeast Asia. Therdsteerasukdi stated, “In the past two to three years after the government's support, the rate of EV use in Thailand has greatly increased. So support from the government will gradually reduce in line with the situation, in order not to cause too much of a burden on the budget.”
The new package, estimated to cost around 3 billion baht, aligns with the government's goal to convert 30 percent of the annual production of 2.5 million vehicles into EVs by 2030. Therdsteerasukdi emphasized, “The government sees a need to continue promoting the EV industry and maintain the EV growth momentum to make Thailand the number one production base in the region.”
The move has already attracted Chinese automakers, including BYD and Great Wall Motor, who have committed to investing $1.44 billion in new production facilities in Thailand. The country, traditionally dominated by Japanese car manufacturers like Toyota and Honda, aims to sustain its growth momentum in the EV sector and solidify its position as the top production base in the region. Beyond manufacturing, Thailand plans to offer incentives and tax breaks for carmakers establishing EV research and development centers.