Thailand’s RM380 million gov’t subsidy for EVs to run out in September, additional funding to 2025 requested
Thailand’s excise department says the 2.9 billion baht (RM380 million) subsidy that has been allocated to promote the usage of electric vehicles (EVs) is set to run out in September, and it is planning to propose additional funds from the new government to ensure continuity of the programme until 2025.
At present, EV buyers receive a subsidy through the support programme, with EVs with a battery capacity of less than 30 kWh getting a 70,000 baht (RM9,170) subidy, while EVs with a battery capacity of more than 30 kWh receive a 150,000 baht (RM19,650) subsidy.
The present subsidy allocation is expected to run out by next month because of the high demand for EVs, the Bangkok Post reports. Since the subsidy programme began, some 20,000 EVs have been registered with the country’s department of land transport. This representa a growth rate of 270% before the measures were adopted, which is said be the highest expansion rate among ASEAN countries.
The department’s director-general Ekniti Nitithanprapas said that the new budget request for the continuation of the programme is likely to be no less than 2.9 billion baht, but this will depend on the growth rate of EV usage within the country.
He added that the subsidy limit is set to remain at 150,000 baht, although this amount will depend on the considerations of the new government as well as the size of the allocated budget.
The subsidies are provided through various car manufacturers, which have inked an agreement with the department to participate in this programme with an understanding that the allocated subsidy must be used to reduce the price of EVs for consumers. Eleven car manufacturers and motorcycle producers are presently participating in the subsidy scheme.
Carmakers receiving EV support funds from the government are required to establish an EV production base in Thailand from 2024, the intent being to have local production offset imported EVs on a one-to-one ratio, meaning that for every imported EV that receives support, one EV must be produced domestically.
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