In a bid to accelerate the adoption of electric vehicles (EVs) and combat greenhouse gas emissions, the Excise Department has proposed a substantial subsidy of at least 3 billion baht from the new government. This move comes as part of the current administration’s commitment to promoting sustainable transportation solutions.
The government has already approved an allocation of 2.9 billion baht from the Central Fund to support the EV subsidy program. Under the existing scheme, buyers can receive a subsidy of up to 150,000 baht per unit towards their EV purchases. However, with approximately 800 million baht already utilized and subsidies totaling around 400 million baht yet to be disbursed to buyers of roughly 3,000 EVs, concerns are rising among car dealers and potential buyers about the fund running dry by September.
Recognizing the urgency of the situation, Natthakorn Uthensut, an advisor to the Excise Department, has emphasized the need for adjustments in the conditions for granting EV subsidies, especially for the first domestically produced EVs set to launch in Thailand in 2024. This strategic move aims to bolster the local production of EVs and propel the nation’s overall EV industry forward.
Currently, the majority of EVs in Thailand are imported from China, the world’s largest exporter of such vehicles. The proposed extension of subsidies seeks to stimulate domestic production and incentivize local manufacturers to enter the market, thereby fostering economic growth within Thailand.
The EV subsidy program has already generated positive responses, as evidenced by the 3,000 EVs purchased with the support of the existing subsidy. However, given the uncertainties surrounding the extension of the subsidy by the new government, car dealers are now urging customers to secure their EV bookings in advance.
With the government’s continued commitment to sustainable transportation and the Excise Department’s push for expanded EV subsidies, Thailand is poised to witness a significant shift towards greener mobility. As the nation anticipates the launch of domestically produced EVs, the future looks promising for both the EV industry and the environment.