Thailand to see surge of EV imports in 2 years; CKD required by 2026
Sanjay · Jan 23, 2024 09:43 AM
0
0
Thailand's Excise Department anticipates a surge in electric vehicle (EV) imports, projecting 175,000 units within the next two years – though local production must also rise, according to Director-General Ekniti Nitithanprapas, as reported by the Bangkok Post.
Hence, as part of the Thai government's EV3.5 four-year initiative (2024-2027), importers are mandated to establish a production base in the country with the aim to manufacture EVs as substitutes for imports from 2024-25.
The Honda e:N1 EV has also begun production in Thailand
The plan envisions a domestic production of approximately 350,000 to 525,000 units of EVs by 2027, accompanied by an estimated subsidy amount of THB 34 billion (~RM 4.6 billion).
Nitithanprapas says EV3.5 seeks to stimulate investments in EV production, fostering competitiveness as Thailand undergoes a transition into the EV industry. This transition aligns with the Excise Department's strategy for sustainable growth, incorporating tax collection and adherence to environmental, social, and governance principles.
By 2026, participants in EV3.5 must establish a production base in Thailand, commencing domestic production to offset imports at a ratio of 1:2 (for every imported EV receiving a subsidy, two units must be locally manufactured). The ratio increases to 1:3 by 2027.
Following this, three Chinese EV manufacturers, including Changan Auto Sales (Thailand), SAIC Motor-CP, and Great Wall Motor Manufacturing (Thailand), have committed to establishing production facilities in Thailand.
The Volvo EX30 made its ASEAN debut in Thailand, and subsequently previewed in Singapore
EV manufacturers that want to receive the subsidy under EV3.5 are required to register with the Excise Department, and participants under this policy will receive support from the Excise Department.
Subsidies for EVs priced up to THB 2 million (~RM 266k) with a battery size ranging from 10 to 50 kilowatt-hours (kWh), are set at THB 50k (~RM 6.7k) per vehicle for purchases in 2024, THB 35k (~RM 4.7k) in 2025, and THB 25k (~RM 3.3k) during 2026-27.
For a battery size of at least 50 kWh, subsidies are THB 100k (~RM 13.3k) per vehicle in 2024, THB 75k (~ RM 10k) baht in 2025, and THB 50k (~RM 6.7k) in 2026-27.
Thailand's EV market also has this Wuling Air; the cheapest all-electric vehicle there
Import duties for completely built electric cars priced up to THB 2 million (~RM 266k) are reduced by up to 40% for the initial two years (2024-25), while the excise tax rate is cut from 8% to 2% for 2024-27. For electric cars priced from 2-7 million baht with a battery size of at least 50 kWh, the excise tax rate is reduced from 8% to 2%.
Pickups priced up to THB 2 million (~RM 266k) with a battery size of at least 50 kWh receive subsidies of 100,000 baht per vehicle and an excise tax exemption during 2024-25, with the excise levy set at 2% in 2026-27.
Electric motorcycles priced below THB 150,000 (~RM 200k) with a battery size of at least 3 kWh receive subsidies of THB 10k (~RM 1.3k) per unit and an excise tax rate of 1% during 2024-27.
With humble beginnings collecting diecast models and spending hours virtually tuning dream cars on the computer, his love of cars has delightfully transformed into a career. Sanjay enjoys how the same passion for cars transcends boundaries and brings people together.
