Thailand’s National Electric Vehicle Policy Board has extended battery electric vehicle (BEV) production deadlines. Specifically, this responds to industry challenges and reduced production outputs. SuperMetalPrice reports that the Board of Investment (BOI) confirmed this extension. Thus, manufacturers gain more time to meet production commitments.
Updated Production Targets and Subsidy Revisions: Adapting to Market Conditions
Under the revised EV 3.5 guidelines, manufacturers must produce 1½ BEVs by 2025 per imported vehicle. Previously, the EV 3.0 required one BEV per imported vehicle. However, unfulfilled 2023 commitments won’t qualify for retroactive subsidies. Instead, they must comply with EV 3.5 rules for future subsidies. Consequently, Thailand aims to maintain EV transition momentum.
Broader Impact on Thailand’s Auto Industry and EV Growth: Navigating Economic Headwinds
The extension addresses broader struggles in Thailand’s automotive sector. Indeed, the Federation of Thai Industries (FTI) lowered its 2024 auto production forecast. Furthermore, January to October 2023 production declined by 19%. Nevertheless, electric vehicle production remains a bright spot. Therefore, EV market growth potential exists despite economic difficulties.
Government Measures to Stimulate Investment in EV Sector: Fostering Sustainable Growth
The BOI approved a temporary excise tax reduction for hybrid vehicles from 2028 to 2032. To illustrate, this measure aims to stimulate 50 billion baht in new investments. Additionally, manufacturers must meet CO2 emissions standards and invest in local production. Hence, Thailand supports greener mobility and attracts long-term EV sector investments. Ultimately, these efforts support Thailand’s EV transition goals.
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