Thailand Weighs $714 Million EV Incentive Plan to Replace Older Vehicles

Thailand is considering a 24-billion-baht (approximately $714 million) incentive program aimed at accelerating electric vehicle adoption by replacing up to 80,000 older vehicles while supporting the country’s automotive manufacturing sector.

According to Reuters, officials are evaluating a package of measures that could include direct purchase subsidies, low-interest loans and tax incentives. The proposal is also expected to cover electric pickup trucks, although details on subsidy levels, eligible vehicle categories and the launch timeline have yet to be finalized.

Program Aims to Boost EV Adoption and Domestic Industry

The proposed initiative is designed to encourage the replacement of older vehicles with battery-electric models while helping revitalize Thailand’s automotive market, which has faced weaker domestic demand in recent years.

Thailand remains Southeast Asia’s largest automotive manufacturing hub, but high household debt and tighter lending standards have weighed on vehicle sales, particularly in the pickup segment, which represents a significant share of the country’s automotive market.

Government officials are also considering expanding the program beyond the initial replacement target of 80,000 vehicles to support additional EV purchases. Such an expansion could further stimulate demand but would require additional funding.

EV Market Continues Rapid Growth

Thailand’s electric vehicle market recorded strong growth in 2025, according to data from the Thai Industrial Federation (FTI).

Battery-electric vehicle sales reached 120,301 units during the year, an increase of 80% compared with 2024. BEVs accounted for 19.4% of the country’s total vehicle market of 621,166 units.

Domestic EV manufacturing expanded even more rapidly, with production increasing to 70,914 battery-electric vehicles in 2025—more than six times the level recorded the previous year.

The increase has been supported by investments from Chinese automakers. BYD began local production in Thailand in 2024, while Changan opened a manufacturing facility in 2025. As production capacity has grown, Thailand has also started exporting locally assembled electric vehicles.

Pickup Segment Seen as Growth Opportunity

Despite the broader expansion of the EV market, adoption of electric pickup trucks has remained limited.

Only 726 battery-electric pickups were sold in Thailand during 2025, compared with no recorded sales the previous year.

Including electric pickups in the proposed replacement program could provide additional momentum in one of the country’s most important vehicle segments while helping manufacturers utilize expanding domestic production capacity.

The government has not yet confirmed whether the proposed 24-billion-baht program will be approved or announced a timetable for its implementation. Officials are continuing to evaluate the structure and scope of the incentive package as part of Thailand’s broader strategy to support both electric mobility and domestic automotive production.