Thailand’s Excise Department has allocated about THB3bn (USD890m) to a price subsidy plan for electric vehicles (EV) sold in the country, as reported by Bangkok Post on March 26. Under the subsidy plan, consumers who purchase an electric car sold in Thailand could enjoy an incentive ranging from USD2,070 to USD4,440. The initiative is to promote EVs and make Thailand a hub for producing electric automobiles and motorbikes in the ASEAN region, as part of the country’s goal to abate carbon emissions, according to a Government spokesperson. The department also expressed that it could approve more budget if needed.
Thailand expects 50% of all new cars registered in 2030 to be electric. To promote the transition, the government also rolled out incentive policies for foreign automakers this February, including cutting tariffs for EVs by 20% to 40% and reducing the excise on imported EVs to 2% from 8%. The incentive measures could boost Thailand’s EV registration to 9,000 units this year from less than 4,000 in 2021, citing the managing director of the Thai unit of China’s Great Wall Motors [2333:HK], Narong Sritalayon. The company and another Chinese automaker, SAIC Motor’s [600104:CH] Thai unit SAIC-CP Motor, have both signed up for the latest price subsidy plan, under which customers could save up to USD4,779 per unit, equivalent to a discount of around 13% to 15%.