Thailand approves 7.12 Billion Baht budget for Electric Vehicle Subsidy Program

The Thai government has approved a budget allocation of 7.12 billion baht to fund the electric vehicle (EV) subsidy program, seeking to boost the country’s transition to greener transportation. The budget will provide subsidies to EV and electric motorcycle buyers who have already made purchases but have not yet applied for the government’s subsidy under the EV promotion measures.

Key Takeways

Budget Allocation: The Thai government has approved a 7.12 billion baht budget for an EV subsidy program to transition to greener transportation. This program covers subsidies for EV and electric motorcycle purchases that have not yet applied for the subsidy. To date, 6.87 billion baht has been disbursed for 55,000 EVs, with over 5 billion baht still pending.
Subsidy Details: In the program’s first phase, EV 3.0, subsidies up to 150,000 baht were given for EVs priced below 2 million baht and up to 18,000 baht for electric motorcycles priced under 150,000 baht. Subsidies go directly to manufacturers, and buyers can claim them upon vehicle registration. The second phase, EV 3.5, running from 2024-2027, offers subsidies between 20,000 and 100,000 baht, based on battery size.
Program Impact: These measures align with Thailand’s goal for 30% of vehicle production to be EVs by 2030, aiming for a 40% reduction in greenhouse gas emissions. Domestic production requirements set for 2024 have spurred over 80 billion baht in investments for establishing EV production bases in Thailand, accelerating the industry’s growth and contributing to sustainable development goals.

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Since the program’s launch, 6.87 billion baht in subsidies have been disbursed for 55,000 EVs, with over 5 billion baht still awaiting disbursement. Under the first phase of the EV 3.0 promotion scheme, subsidies of up to 150,000 baht were provided for EVs priced below 2 million baht, and up to 18,000 baht for electric motorcycles priced below 150,000 baht. The subsidies are disbursed directly to manufacturers, and buyers can request the subsidy once their vehicles are registered.

The second phase of the program, EV 3.5, running from 2024 to 2027, will offer subsidies ranging from 20,000 to 100,000 baht depending on the vehicle’s battery size. These measures aim to support Thailand’s target of having EVs account for 30% of total vehicle production by 2030, contributing to a 40% reduction in greenhouse gas emissions.

As part of the program, manufacturers must meet domestic production requirements by 2024 or face increased obligations in 2025. The requirement has already led to significant investments in the country, with over 80 billion baht committed to setting up EV production bases in Thailand. The government hopes these measures will accelerate the growth of the EV industry and help achieve its sustainable development goals.