Shock and recharge: Thailand’s EV sector hopes for spark
The Electric Vehicle Association of Thailand (EVAT) expects greater manufacturer interest in Thailand’s EV sector. The latest incentive package might be less appealing than earlier ones. Current incentives consist of tax reductions and subsidies for car producers and importers. These incentives aim to boost EV production and consumption from 2022 to 2023. The incentives range from 70,000 to 150,000 baht per unit.
Manufacturers commit to constructing EV production facilities in Thailand. The upcoming package from the Srettha Thavisin administration is under scrutiny by EV manufacturers. Some foreign manufacturers might delay their expansion in Thailand until they comprehend the new policy’s implications. However, many have expressed interest in investing in Thailand’s EV sector, according to Krisda Utamote, President of EVAT.
“We expect 1-2 new EV investors, especially from China, to seek investment opportunities in Thailand.”
The new EV incentive package is currently awaiting approval from the National EV Policy Committee.
Utamote predicts fewer incentives in the new package compared to the previous one approved in early 2021. This is due to the government’s focus on the initial stages of the domestic EV industry and reliance on foreign investors for technological expertise. He suggests the new package might offer a maximum subsidy of 100,000 baht.
The National EV Policy Committee in 2021 set a goal for EVs to comprise 50% of locally made vehicles by 2030. This ambitious strategy aims to position Thailand as a regional hub for EVs. Promoting EV use aligns with Thailand’s carbon neutrality goal, targeting a balance between carbon dioxide emissions and absorption by 2050.
Between January and July this year, battery EV sales in Thailand saw a substantial 1,605.4% increase, reaching 35,781 units, Bangkok Post reported.
On the other hand, sales of cars powered by internal combustion engines fell by 15.7% to 381,453 units, as reported by the Federation of Thai Industries.
