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Thailand Approves Tax Incentives for Electric Trucks and Buses Adoption
The National Electric Vehicle Policy Committee in Thailand has approved tax incentives to encourage the transition of commercial fleets of large trucks and buses to battery electric vehicles (BEV).
Key Takeaways
- Thailand’s EV Board approved tax incentives for electric trucks and buses to encourage their adoption, aiming to reduce pollution and support companies’ net-zero targets.
- The country is reinforcing its status as an EV manufacturing hub by offering special tax deductions for companies purchasing electric trucks and buses, as well as providing financial support for battery cells manufacturers.
- The EV3 scheme for promoting the use of EV passenger cars has already resulted in over 78,000 registered EVs enjoying tax discounts and subsidies, with a requirement for local production by participating companies.
The Thailand National Electric Vehicle Policy Committee (EV Board) has recently approved tax incentives to encourage companies to transition their commercial fleets of large trucks and buses to battery electric vehicles (BEV). Additionally, cash grants will be provided to EV battery cells manufacturers. These policies aim to expand the country’s support for the entire EV ecosystem and reinforce Thailand’s status as an EV manufacturing hub .
The incentives aim to reduce pollution, support companies in reaching net-zero targets, and reinforce Thailand’s status as an EV manufacturing hub. The measures include special tax deductions for companies purchasing electric trucks and buses, as well as cash grants for manufacturers of EV battery cells.
Thailand is a significant player in the automotive industry, ranking among the top 10 in the world for automotive production and total exports. In terms of electric vehicles (EVs), Thailand is the first country in Southeast Asia to offer special incentives to both the supply and demand sides. Under the 30@30 policy, Thailand has set a clear target: by 2030, at least 30% of cars made in Thailand should be EVs .
The support for electric-powered buses and trucks will come in the form of a special tax deduction granted to eligible companies. For domestically manufactured vehicles, companies can deduct expenses of 2 times the actual price of the vehicles, without any price ceiling. For imported vehicles, the deduction will be equal to 1.5 times the actual price.
The eligible large electric vehicles include container trucks, liquid trucks, hazardous substance trucks, special trucks, tow trucks, as well as both air-conditioned and non-air-conditioned electric buses.
Furthermore, the EV Board also approved a plan to promote local manufacturing of battery cells for EVs and energy storage systems (ESS). Financial support will be provided through Thailand’s Competitiveness Enhancement Fund, along with other benefits available under the Competitiveness Enhancement Act for companies meeting specific criteria.
To qualify for investment promotion under this scheme, a company must meet the following requirements:
(1) Being 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) The 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.
These measures are expected to significantly increase the adoption of electric trucks and buses, reduce pollution from transportation and manufacturing sectors, and support companies’ efforts to achieve their net-zero targets.
EV Sector Update
The meeting also heard an update report on the EV3 measures to promote the use of EV passenger cars.
Statistics as of 31 January 2024 show that, since the scheme started in 2022, a total of 14 manufacturers and importers of BEV cars and pickups have registered a total of 78,554 EV cars to enjoy the excise tax discounts and subsidies. According to the conditions of the EV3 scheme, these companies will have to produce in Thailand at least one vehicle for each vehicle imported.
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