Thailand Cabinet greenlights EV subsidies, up to RM 19k off for CKD electric trucks until 2023

The Thailand cabinet announced yesterday that it has approved a revised EV promotion package that now includes not just excise and import tax cuts, but also subsidies ranging from THB 70,000 to THB 150,000 (about RM 9,040 to RM 19,370, based on current exchange rate) per vehicle.

Under the new package, buyers of EVs with battery capacity of between 10 – 30 kWh will get THB 70,000 (about RM 9,040) worth of subsidy, while EVs with more than 30 kWh battery will get THB 150,000 (about RM 19,370).

The 30 kWh limit covers pretty much almost any regular electric vehicle.

For reference, the Hyundai Kona EV, currently Malaysia's cheapest EV, priced from RM 149,888, has a 39.2 kWh battery as standard (e-Lite and e-Plus variant, 305 km range, WLTP), while the highest specification Max variant has a 64 kWh battery, with a 484 km range (WLTP).

Also read: Review: Hyundai Kona Electric e-Plus – Is it time to get an EV?

The smallest Wuling Mini EV micro city car from China (available in Thailand from parallel importers) has two battery size options - 9.2 kWh and 13.82 kWh.

Also read: Who needs a pick-up when the Wuling Mini EV can float through a flood

The subsidy applies to both locally-assembled (CKD) and imported (CBU) EVs, including CKD pick-up trucks, but will expire by 31-December 2023.

Electric motorcycles priced up to THB 150,000 (about RM 15,300) will also a receive THB 18,000 (about RM 2,300) in subsidy, also applicable to both CKD and CBU models.

Currently, excise tax for EVs (battery electric vehicles, BEVs only) in Thailand have already been reduced to 2 percent, while import tax for China-made EVs have been reduced to 0 percent under a Thailand-China Free Trade Agreement.

The standard import tax is at 80 percent. Thailan’s free trade agreements with Japan and Korea allows EVs originating from these two countries to be taxed at 20 percent and 40 percent respectively.

However, this is contingent on meeting the necessary Japan- / Korea-sourced content ratio, which given the China-dominant parts supply chain nature of EVs, the tax break is moot because most models won’t qualify for it.

According to the Bangkok Post, citing the Electric Vehicle Association of Thailand (EVAT), the country sold just 5,781 new EVs in 2021, including 3,673 electric motorcycles.

By 2030, Thailand aims to have 50 percent of all locally-produced vehicles to be EVs, including hybrids (HEV).