The Thai government has agreed to extend the 100,000 baht per car subsidy for buyers of electric vehicles (EVs) until 2027, to promote the production and use of EVs in the country.

The government also agreed to cut the import duty charged on completely-built up (CBU) EVs by up to 40% for 2024 and 2025 on vehicles which are priced at up to two million baht per unit and to cut excise tax from 8% to 2% on cars priced at up to seven million baht, on the condition that the importers produce two EVs locally for every imported EV within 2026 and three for every imported EV within 2027.

Narit Therdsteerasukdi, secretary-general of the Board of Investment, said that the National Electric Vehicles Policy Committee, or EV Board, chaired by Prime Minister Srettha Thavisin, has given top priority to making Thailand the regional hub for the production of electric vehicles, with a goal to produce about 725,000 EVs within 2030, or 30% of Thailand’s production of all vehicles, including internal combustion models, and 675,000 electric motorcycles.

He said the EV Board has approved measures to promote the use of EVs for 2024 – 2027, under the second stage promotion, or EV3.5, to promote local production of electric passenger cars, pickups and motorcycles.

For EVs priced at up to two million baht, with a minimum battery size of 50kWh, subsidies, ranging from 50,000-100,000 baht, will be granted. For batteries of less than 50kWh, the subsidy will range from 20,000 -50,000 baht.

For electric pick-up trucks, priced not exceeding two million baht, with a 50kWh battery and up, the subsidy will range from 50,000-100,000 baht.

For electric motorcycles, priced at not more than 150,000 baht, with a 3kWh battery size and up, the subsidy will be from 5,000 -10,000 baht.

The EV board also instructed the Excise Department to extend the registration of EVs, from the end of December to the end of next January, to enable buyers of EVs during the Thailand International Motor Expo in December to claim the subsidy.

During the first nine months of this year, 50,340 EVs have been registered, representing a -fold increase from last year.

Fifteen companies with 13 car brands have joined the EV promotion program, or EV3, since last year.