The registration of new electric vehicle models in Thailand has seen a remarkable increase, quadrupling to almost 90,000 units per year, which accounts for around 10 percent of the country’s total vehicle sales.

This surge is supported by new subsidies, tax reductions, and the growing presence of Chinese carmakers, who now command more than half of the EV market share.

Here’s a breakdown of the specific incentives:

Duty Reduction Privileges: For imported completely built-up (CBU) EVs, Thailand offers duty reduction privileges. For instance, CBU EVs with a battery size over 10 kWh and a suggested retail price (SRP) of less than 2 million THB can enjoy a reduced import duty rate from 80% to 40%. If these vehicles are imported under a Free Trade Agreement (FTA) with a duty rate of less than 40%, they are exempt from import duty.

Excise Tax Reduction: The excise tax for BEV passenger cars has been reduced from 8% to 2%, and for BEV pick-up trucks, the tax is set at 0%. This significant reduction aims to lower the final cost to the consumer.

Excise Tax Subsidy: An excise tax subsidy is available for electric motorcycles, pick-up trucks, and passenger cars, applicable to both imported and locally produced BEVs. This subsidy supports eligible manufacturers who also import CBU BEVs during 2022-2023, provided they offset production by producing any model of vehicle or vehicles similar to the imported models at an import to local production ratio of 1:1 by the end of 2024.

Customs Duty Reductions and Exemptions: Specific regulations have been approved that provide customs duty reductions and exemptions for certain types of imported EVs. This includes a 40% reduction of customs duty for EVs with a retail price up to 2 million THB and a 20% reduction for those priced between 2-7 million THB. If the applicable customs duty is already less due to an FTA, the EVs may be exempt from customs duty.

Tax Deductions and Cash Grants: Special tax deductions are available for companies purchasing electric trucks and buses, along with cash grants for manufacturers of EV battery cells. These measures aim to reduce pollution and support companies in reaching net-zero targets.

These incentives are part of a comprehensive package from 2022 until 2025, aimed at increasing the demand for EVs, attracting investment in the EV industry, and encouraging the local manufacturing of EVs.