21-2-2024 (BANGKOK) Thailand has given its nod to incentives designed to encourage companies to shift their commercial fleets of large trucks and buses to battery electric vehicles (EVs), the government announced on Wednesday (Feb 21). The initiative also includes cash grants aimed at supporting EV battery cell manufacturers, reinforcing Thailand’s standing as a hub for EV manufacturing.
The government stated that these policies are expected to significantly boost the adoption of electric trucks and buses, reduce pollution from the transportation and manufacturing sectors, and align with companies’ efforts to achieve their net-zero targets.
To support companies in this transition, the government will provide special tax deductions to eligible companies, effective until December 2025. Companies purchasing vehicles manufactured domestically will be eligible to deduct expenses equivalent to two times the actual price of the vehicles, without any price ceiling imposed. For the acquisition of imported vehicles, the deduction will be equal to 1.5 times the actual price.
Last year, Thailand unveiled a subsidy package to bolster its thriving electric vehicle industry, as the leading regional auto hub aimed to sustain robust EV sales while managing budgetary considerations.
As part of a government plan, Thailand targets converting 30% of its annual production of 2.5 million vehicles into electric vehicles by 2030. The tax cuts and subsidies implemented by Thailand have already attracted several Chinese automakers. Companies such as BYD and Great Wall Motor have committed to investing US$1.44 billion in new production facilities in Southeast Asia’s second-largest economy.
While Japan has historically dominated Thailand’s auto manufacturing sector, the latest incentives and support aim to diversify and enhance the country’s position in the rapidly evolving landscape of electric vehicles. The move aligns with global trends towards sustainable transportation and reinforces Thailand’s commitment to being a key player in the growing EV market.
