Thailand announces subsidy package for electric buses and trucks
The support for buses and trucks with electric drives is to take the form of a special tax deduction for companies and will apply until 31 December 2025. Next to utility vehicles, the promotion of battery manufacturing in Thailand was also discussed, and the government decided to offer “financial support via the country’s Competitiveness Enhancement Fund, and possibly other benefits available under the Competitiveness Enhancement Act.”
Companies that purchase domestically produced electric vehicles will be able to deduct expenses amounting to twice the actual price of the vehicle, without a price cap being set. When purchasing imported electric vehicles, the deduction will be 1.5 times the actual vehicle price. The measure still requires a final review and approval by the cabinet before it can be implemented – as do planned cash subsidies for battery cell manufacturers.
In order to qualify for the above-mentioned battery assistance, a company must meet following criteria: (1) Be a leading and well recognized battery manufacturer providing batteries to EV manufacturers. (2) Having a clear plan to produce for battery cells for batteries used in EV, and also if possible to produce battery cells for batteries used in ESS. (3) Batteries must have a high energy density of not less than 150 Wh/kg. (4) The battery must have a life cycle of not less than 1,000 cycles, counting from 70% of the nominal capacity at a depth of discharge of not less than 80% at a test temperature of 20-25 degrees Celsius.
“The measures approved today will complete the so-called EV3 and EV3.5 sets of measures taken earlier for the passenger car sector, by focusing this time on large commercial vehicles,” said Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI), who is also the secretary of the EV Board. “We believe this will significantly increase the adoption of electric trucks and buses, reduce pollution from the transportation and manufacturing sectors, and support companies’ moves to reach their net-zero targets.”
Thailand also announced an extensive EV subsidy package towards the end of last year, which aims to subsidise the purchase of electric cars, pickups and motorbikes. The nation is also one of the top ten automotive manufacturers in the ASEAN region, and even boasts its own lithium deposits, which will likely help the burgeoning EV industry there. The Chinese manufacturers Great Wall and Neta have already started production in Thailand, while battery production is also underway with Gotion High-Tech.
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