Thailand has announced incentives to encourage companies to transition their commercial fleets of large trucks and buses to battery electric vehicles (EVs), aiming to bolster its position as a hub for EV manufacturing, the government revealed on Wednesday.
“This will significantly increase the adoption of electric trucks and buses, reduce pollution from the transportation and manufacturing sectors, and support companies’ moves to reach their net-zero targets,” the government stated.
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Under the new policies, eligible companies will receive special tax deductions until December 2025. Companies purchasing domestically manufactured vehicles will be able to deduct expenses equal to two times the actual price of the vehicles, without any price ceiling. For imported vehicles, the deduction will be 1.5 times the actual price.
Thailand, Southeast Asia’s second-largest economy, approved a subsidy package last year to support its growing electric vehicle industry, aiming to convert 30% of its annual production of 2.5 million vehicles into EVs by 2030.
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The country’s tax cuts and subsidies have attracted significant investments from Chinese carmakers. Companies like BYD and Great Wall Motor have committed $1.44 billion to new production facilities in Thailand, challenging the dominance of Japanese firms like Toyota Motor Corp and Honda, which have long used Thailand as a major export base.
