The Cabinet has announced that the existing higher subsidy rates for electric vehicles (EVs) bought in December will be extended on the condition that they are registered by January’s end. The announcement comes before a planned reduction in subsidies, set to commence on January 1, 2024, which will decrease the subsidy range from 70,000-150,000 baht to 50,000-100,000 baht, effective through 2027.
The decision aims to accommodate an expected surge in EV purchases in the final month of 2023, with the higher subsidy rate applicable for registrations until January 31. The move is part of a 41 billion baht budget for EV production and purchase support, including 34.1 billion baht for the new EV 3.5 program from 2024-27.
Board of Investment (BOI) Secretary General Narit Therdsteerasukdi stated that the prolonged subsidies should reduce the cost of EVs, thus enhancing sales and attracting investments into Thailand’s local EV sector, in line with the country’s objective to achieve 30% zero-emission vehicle production by 2030.
Under the new policy, both EV manufacturers and purchasers will receive incentives, with financial rewards varying according to the type of vehicle and the size of its battery. The Excise Department anticipates facilitating support for 830,000 electric vehicles, including cars, motorcycles, and trucks, as part of the EV3.5 program. (NNT)
