In depth
Amendment to EV3 Measures
To further facilitate BEV players who are granted privileges under EV3 Measures, the following amendments are expected to be implemented:
- Extension of the applicability of the subsidies for the BEVs imported before 1 January 2022, to cover those imported into Thailand from 1 November 2021 onwards and were sold to consumers after the same models of BEVs are granted subsidies.
- Relaxation of the condition that the vehicle registrations must be completed by 31 December 2023 to "must be sold by 31 December 2023 and registered by 31 December 2024."
EV3.5 Measures
EV3.5 Measures are considered an extension of the EV3 Measures, but with less governmental subsidies and an increased level of obligations in relation to domestic EV manufacturing. This is not surprising as the gradual reduction in subsidies was also observed in other countries, for example in China.
In response to the Cabinet resolution, on 22 December 2023, the Excise Department published the draft Excise Department Notification on Determination of Criteria, Methods, and Conditions to Obtain Incentives under the Measures Promoting the Use of Electric Vehicles Phase 2 for Passenger Cars and Motorcycles ("Draft Excise Notification") for public hearing until 27 December 2023.
Some noteworthy points of EV3.5, based on the Cabinet resolution and the Draft Excise Notification, are summarized below.
- Subsidies and tax privileges
| Vehicle type and retail price range |
Battery capacity requirements |
Subsidy (THB per car) |
CBU import duty reduction |
Excise tax reduction |
|
Passenger car
(with a retail price up to THB 2 million) |
50 kWh or more |
If imported or produced domestically:
- 100,000 (in 2024)
- 75,000 (in 2025)
If produced domestically:
50,000 (in 2026-2027) |
Reduction rate up to 40% (for importation during 2024-2025) |
2%
(reduced from 8%) |
| 10 kWh to less than 50 kWh |
If imported or produced domestically:
- 50,000 (in 2024)
- 35,000 (in 2025)
If produced domestically:
25,000 (in 2026-2027) |
|
Passenger car
(with a retail price of more than THB 2 million but not exceeding THB 7 million) |
50 kWh or more |
Not available |
Normal rates apply. |
2%
(reduced from 8%) |
|
Pick-up truck
(with a retail price up to THB 2 million) |
50 kWh or more |
100,000
(only for domestic production) |
Normal rates apply. |
Normal rates apply.
(0% during 2024-2025 and 2% during 2026-2027) |
|
Motorcycle
(with a retail price up to THB 150,000) |
3 kWh or more |
10,000
(only for domestic production) |
Normal rates apply. |
Normal rates apply.
(1% during 2024-2027) |
- Domestic production conditions for BEVs that are imported as Completely Built Units (CBUs) during 2024-2025 will be imposed at the ratio of 2:1 (i.e., two BEVs must be produced in Thailand per one imported CBU) if the domestic EV production starts in 2026, and at the ratio of 3:1 if the production starts in 2027.
- Batteries that will be used in the domestic BEV production, both imported and locally produced, must comply with the standards prescribed by the Thai Industrial Standards Institute. The specifications of BEVs must also support quick charging systems.
- Business operators who have been granted privileges under the EV3 Measures may also apply for privileges under the EV3.5 Measures, provided that conditions under each measure are complied with.
Note that it is still unclear whether the EV3.5 Measures will cover BEVs that are transport cars with a seating capacity not exceeding 10 persons as categorized under the Excise Tax Act, B.E. 2560 (2017) and the relevant ministerial regulations, in addition to passenger cars.
It is expected that Thailand will spend approximately THB 34 billion to support the EV3.5 Measures. The implementation of these measures is subject to further subordinate legislation to be issued by the relevant authorities, including the Excise Department and the Customs Department. We will monitor the developments of these measures and keep you updated.
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