Electric cars are certainly selling well. The government provides a maximum subsidy of 100,000 baht from EV scale 3.5.

Electric cars are certainly selling well. After the government introduced a maximum subsidy of 100,000 baht from EV Measure 3.5, it is ready to move forward with Thailand’s push towards an electric vehicle hub in the region.

Mr. Narit Theodsathirasak, Secretary-General of the Board of Investment or BOI, as a member and Secretary of the National Electric Vehicle Policy Committee or EV Board, said this after the Cabinet meeting. On December 19, 2023, a decision was issued approving measures to support the use of electric vehicles Phase 2 or EV 3.5 over a period of 4 years (2024-2027), which will begin to be used as of January 2. 67 etc

The EV 3.5 standard covers electric cars, electric pickup trucks, and electric motorcycles. The benefits consist of 3 parts:

1. Support: Support depends on the type of vehicle. And battery size
2. Reducing the rate of import duties on finished cars
3. Reducing excise tax rates

– In the case of electric vehicles whose price does not exceed 2 million baht with a battery size of 50 kWh or more, they will receive a subsidy of 100,000 baht per vehicle in the first year, a subsidy of 75,000 baht per vehicle in the second year, and a subsidy of 50,000 baht. Baht per vehicle per year 2.3-4

– Electric vehicles with battery sizes less than 50 kWh will receive a subsidy of 50,000 baht per vehicle in the first year, a subsidy of 35,000 baht per vehicle in the second year, and a subsidy of 25,000 baht per vehicle in years 3-4.

– Electric pickup trucks priced no more than 2 million baht with a battery size starting at 50 kWh will receive a subsidy of 100,000 baht per vehicle over 4 years, only for those produced locally.

– Electric motorcycles priced no more than 150,000 baht with a battery size starting at 3 kWh will receive a subsidy of 10,000 baht per motorcycle for 4 years, only for those produced locally.

In addition, under the EV 3.5 measure, there will be a reduction in import duties of no more than 40 percent for imports of finished electric vehicles or CBUs with a price not exceeding 2 million baht in the first two years (2024-2025) and a reduction in excise tax rates from 8 percent. To 2 percent for electric cars whose price does not exceed 7 million baht

By specifying the conditions for investment in the country, allowing the beneficiaries of the support to produce electric vehicles to compensate for imports during the year 2026 at a ratio of 1:2 (importing one vehicle, compensating production of two vehicles), and the ratio will increase to 1:3 in 2027.

This has provided the opportunity for existing entrepreneurs who have already participated in the EV3 measures, if they wish to join the EV3.5 measures, to be able to apply for benefits. The conditions of each procedure must be adhered to.

Under the EV3.5 measure, the tax administration expects to support approximately 830,000 electric vehicles over 4 years, divided into 454,000 electric cars, 346,000 electric motorcycles and 30,000 electric pickup trucks. Use a budget of 34,000 million baht over a 4-year period.