Thailand is reviewing a 24 billion baht (US$714 million) electric vehicle (EV) support programme aimed at replacing up to 80,000 ageing transport vehicles as the country accelerates its energy transition efforts and seeks to revive its automotive sector.
The proposed plan would initially focus on commercial transport vehicles including taxis, motorcycle taxis, tuk-tuks, buses and trucks, with the government now considering whether to expand assistance to cover other vehicle categories.
Deputy Transport Minister Siripong Angkasakulkiat said the proposal was submitted to a government committee in June and could include subsidies, low-interest financing and tax incentives for eligible vehicle replacements.
“We are reconsidering whether the assistance should be extended to all vehicle categories, not just those for transportation,” Siripong said.
The initiative comes as Thailand’s automotive industry faces pressure from weaker domestic demand. Vehicle sales fell to a 15-year low in 2024 as high household debt and stricter lending conditions affected purchases, particularly in the pickup truck segment.
Thailand remains Southeast Asia’s largest automotive production hub, but industry groups have urged the government to ensure future EV incentives support local manufacturing.
The Federation of Thai Industries’ Automotive Industry Club said new measures should prioritise locally produced EVs using a higher share of domestic components to strengthen supply chains and create jobs.
“More domestic EV production means more jobs, higher incomes and greater tax revenue, (and) is a win-win for businesses, consumers and the government,” said Surapong Paisitpattanapong, spokesperson of the group.
Thailand has attracted more than US$4 billion in EV-related investments, including from Chinese manufacturers such as BYD and Great Wall Motor, through previous tax incentives and support programmes.
The government is also considering financing assistance for taxi drivers replacing vehicles that reach the 10-year age limit next year. The scheme could reduce daily loan repayments for EV purchases to 500 baht from around 700 baht over five years.
Finance Minister Ekniti Nitithanprapas said the programme could also support EV purchases, pickup truck replacements and vehicles capable of using B20 biodiesel through low-interest loans and subsidies.
The government expects discussions on the programme’s final structure to continue for another month, with implementation targeted for this year.
Reuters
