December 8, 2024 – According to a report in the Bangkok Post today, the Electric Vehicle Association of Thailand (EVAT) has revealed that due to the continued downturn in the automotive industry, many electric vehicle manufacturers are considering withdrawing from the government’s electric vehicle incentive program and adjusting their production plans accordingly.
Companies participating in the incentive program, known as EV3.0, had enjoyed consumption tax reductions, import tariff concessions, and subsidies to promote the consumption and production of electric vehicles from 2022 to 2023. To qualify for these benefits, automakers must assemble electric vehicles locally in Thailand from this year (2024) onwards and meet production targets set by the Thai government.
Suroj Sangsanit, the chairman of the Electric Vehicle Association of Thailand, stated, “Many companies are discussing withdrawing from the subsidies due to weak consumer purchasing power and tighter auto loan standards implemented by banks and financing companies, leading to a slowdown in the growth of the domestic automotive market in Thailand. Companies believe they may not benefit from the incentives because of the sluggish car market in Thailand.”
Under the EV3.0 program, the Thai government provides subsidies of up to 150,000 Thai baht for electric vehicles priced below 2 million Thai baht.
For companies producing electric vehicles from 2024, they must adhere to a “1:1 quota,” meaning that for every imported electric vehicle, they must produce one locally. If production starts next year, this quota increases to 1.5:1.
Data from the Automotive Industry Club of the Federation of Thai Industries shows a significant decline in local passenger car sales in October. Specifically, electric vehicle sales dropped by 49.7% to 3,717 units, while fuel vehicle sales decreased by 27.8% to 11,562 units compared to the same period last year.
