Thailand incentivises companies to go green with EV conversion

The Thai government confirmed yesterday that measures have been approved to encourage companies to convert their commercial fleets of large trucks and buses to battery electric vehicles (EVs). This move aims to increase the adoption of EVs and support companies in achieving their net-zero targets.

In addition, cash grants will be provided for EV battery cell manufacturers. These policies are expected to bolster Thailand’s stature as an important hub for EV manufacturing.

The government will support eligible companies through special tax deductions, valid until December 2025. Companies purchasing domestically produced vehicles can deduct expenses amounting to twice the actual price of the vehicle, without any price limit. In contrast, when purchasing imported vehicles, a deduction equal to 1.5 times the actual price of the vehicles will be applied, reported Bangkok Post.

In 2020, Thailand approved a subsidy package for its burgeoning EV sector. The region’s leading auto hub seeks to maintain its robust EV sales momentum while managing budgetary support.

As per a government plan, by the end of this decade, Thailand intends to convert 30% of its annual vehicle production, currently standing at 2.5 million vehicles, into EVs.

Thailand’s tax cuts and subsidies have been successful in attracting several Chinese car manufacturers. These include BYD and Great Wall Motor, which have committed to investing US$1.44 billion in new production facilities in Southeast Asia’s second-largest economy.

• Follow us on :
•