The cabinet has approved the allocation of 7.12 billion baht from the central reserve budget designated for emergency and essential purposes to support the electric vehicle (EV) subsidy program.
After the weekly cabinet meeting on Tuesday, Jirayu Huangsab, an advisor to the prime minister, stated that the budget will be used to subsidize buyers of electric vehicles and motorcycles who have already purchased their vehicles but have not yet applied for the government subsidy under the EV promotion measures.
Since the launch of the EV promotion measures, subsidies have been distributed for 55,000 EVs, totaling 6.87 billion baht, while over 5 billion baht remains pending for future disbursement.
Under the first phase of the EV 3.0 promotion, the Excise Department has offered subsidies of up to 150,000 baht for EVs priced below 2 million baht, and up to 18,000 baht for electric motorcycles priced under 150,000 baht.
The government disburses these subsidies directly to car manufacturers, and once EV buyers register their vehicles, they can submit a request for the subsidy through the manufacturer.
Thailand aims for EVs to represent 30% of total vehicle production by 2030, which aligns with a target of reducing greenhouse gas emissions by 40% from current levels.
EVs are anticipated to support sustainable development goals by significantly lowering carbon dioxide emissions throughout their production and usage.
Under the EV 3.0 program, vehicles priced below 2 million baht with batteries smaller than 30 kilowatt-hours (kWh) receive a subsidy of 70,000 baht per vehicle, while those with batteries of 30 kWh or larger receive 150,000 baht per vehicle.
The second phase, known as the EV 3.5 scheme, will run from 2024 to 2027, offering subsidies of 50,000 to 100,000 baht per vehicle for EVs priced under 2 million baht with batteries of 50 kWh or larger, and 20,000 to 50,000 baht per vehicle for those with batteries smaller than 50 kWh.
These incentives have encouraged various manufacturers to invest in establishing production bases in Thailand, with investments exceeding 80 billion baht.
The measures require that by 2024, participants must produce EVs domestically to compensate for imports equal to the volume of subsidized sales. If this production requirement is not fulfilled by 2024, by 2025 participants are mandated to produce 1.5 times the sales volume. This regulation has led manufacturers to set up production facilities in Thailand, generating new investments and industries.
