As people become more aware of the impacts of global warming and sustainable development, consumer demand for electric cars is gradually increasing. As the world’s 11 the automaker, Thailand does not want to lag behind in this growing path.
According to Thai media reports at a cabinet meeting on February 15, 2022, to achieve the government’s goal of achieving 30 percent of Thailand’s total automobile production by 2030, Thailand has approved a substantial reduction in some tariffs proposed by the electric vehicle policy committee for automotive development measures such as customs duties and consumption taxes for electric vehicles, motorcycle and pickup trucks as well as market subsidies. It will come into effect in May 2022. Specific measures are as follows:
- The preferential policy for electric vehicles:It will reduce taxes, consumption taxes, and giving serious market support. It is divided into 2 grades according to the price of electric vehicles. If the price of the car does not exceed 2 million baht, the import price can be reduced by up to 40% (2022-2023) and the consumption tax will be adjusted from 8% to 2% (2022-2025). In addition, if the battery is less than 30 kWh will receive a subsidy of 70,000 Baht and a subsidy of 150,000 baht. If the battery has a capacity of 30 kWh or more with the price of the car is 2-7 million baht, the import tax for the whole car can be reduced by 20% (2022-2023) and the consumption tax will be adjusted from 8% to 2% (2022-2025).
- The preferential policy for electric pickup trucks:Electric pickup trucks priced at no more than 2 million baht and batteries with a capacity of 30 kWh or more, only for those produced in Thailand, exempt from consumption tax and will receive an alternate sponsorship of 150,000 baht per car (2022-2025)
- The preferential policy for electric motorcycle:Electric motorcycle priced at no more than 150,000 baht will receive an alternate sponsorship of 18,000 baht per car (2022-2025) including importing all parts and importing the whole motorcycles.
However, the condition that electric motorcycle will receive this privilege policy is to have a factory in Thailand and must produce electric motorcycle in Thailand in 2024 equal to the amount of the imported complete electric motorcycles in 2022-2023 as compensation. If necessary, production of the offset electric motorcycles could be extended until 2025 but it would have to be produced in a 1:1.5 ratio (for all imported electric motorcycles must produce 1.5 electric motorcycle in Thailand).
Although there are many domestic car manufactures in Thailand and most of the parts can be bought locally. Like Europe and Japan, Thailand has a large automobile and fuel production base thus the direct change will be difficult. Therefore, it is necessary to attract Chinese investors so it’s a great opportunity for Chinese car companies to invest in Thailand.
Borthong Industrial Estate is the industrial estate that facilitate the construction of factories for foreign companies in Thailand. The automotive industry is one of the main target industries. Therefore Borthong Industrial Estate welcomes investors to visit and operate their business in the industrial estate.