Thailand is weighing an array of incentives including lower taxes and cash subsidies to develop the market for electric vehicles (EVs), hoping that the perks spur automakers to invest more and make the Southeast Asian nation a manufacturing hub for cleaner vehicles.
Thai Prime Minister Prayuth Chan-ocha’s Cabinet may soon consider subsidies between 70,000 baht (US$2,155) and 150,000 baht depending on the type and model of vehicle, and lower excise tax and import duties on completely built and partially built EVs, according to a draft proposal viewed by Bloomberg from the National Electric Vehicle Policy Committee headed by Thai Deputy Prime Minister Supattanapong Punmeechaow.
The wider incentives for imports are to last until 2025, when local production is expected to gather momentum. The tax breaks for EV automakers are granted on the condition that companies produce the same number of vehicles or more by 2025 that they import in the preceding years, the proposal said.
Photo: AFP
Supant Monkolsuthree, chairman of the Federation of Thai Industries and a member of the EV policy committee, confirmed the contents of the draft plan.
The EV policy committee is a panel of government and industry officials responsible for drafting a policy roadmap to help Thailand achieve 100 percent zero-emission vehicle production by 2035.
Thailand is bidding to retain its status as a Southeast Asian automobile manufacturing hub as automakers globally pivot to electric vehicles. The nation expects to draw as much as 400 billion baht in EV investment over the coming years.
Foxconn Technology Group (富士康科技集團), Toyota Motor Corp, Great Wall Motor Co (長城汽車) and PTT Pcl are among companies planning to build factories in Thailand.
The subsidy for imported EVs is to be paid to local firms, which in turn pass the benefits to buyers. If the companies are found in breach of the rules, they would lose all incentives, forfeit their bank guarantees and pay back the subsidy with accrued interest, the proposal said.
“The package should be helpful in creating local demand for EVs and also encourage producers to start producing EVs or they will lose the opportunity to benefit from this market,” Supant said.
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