Thailand is not just attracting honeymooners from across the
\nglobe. Through its policies, the Thai government is attracting
\nbillions of dollars in foreign investments to propel the country
\ninto a regional hub for the electric vehicle (EV) manufacturing.
\nThe policies seem to be working as there have been many
\nannouncements over the past one year by original equipment
\nmanufacturers, especially from mainland China, and battery
\nsuppliers for setting up of new plants in Thailand.<\/p>\n
In March, Neta Auto commenced mass production Besides having the potential for becoming an EV production and Updated policy expected to push EV demand<\/strong><\/p>\n Thailand aims to convert 30% of its annual automotive production A key point to notice in the EV 3.5 package is the absence of any To be eligible for the incentives, the company's domestic EV Production of EV batteries to grow<\/strong><\/p>\n
\nof EVs<\/a> at its first Thai factory, which has an annual
\nproduction capacity of 20,000 vehicles. In February, GAC Aion
\nstarted construction of an EV factory in Thailand that will have
\ncapacity for producing 50,000 units per year. The plant will be
\nbuilt in two phases; the first phase is scheduled for completion in
\nJuly 2024. In January, Great Wall Motor started mass
\nproduction<\/a> of GWM Ora 03 in Thailand. This marked the first
\ntime the Chinese OEM mass-produced an EV outside of China.
\nAdditionally,
\nChangan Automobile is building an EV factory<\/a> in the country
\nthat is expected to begin operations in 2025 with an initial
\ncapacity of 100,000 units per year. Automakers such as BYD and SAIC
\nare also ramping up production capacity for EVs in Thailand.<\/p>\n
\nexport hub in the future, the rising sales of Chinese vehicle
\nbrands in Thailand seems to be a major factor behind the
\ninvestments. According to a report by Thailand Business News,
\nmodels from mainland Chinese automakers accounted for nearly 80% of
\nthe EV market in 2023.<\/p>\n
\ninto EVs by 2030. In this regard, earlier this year The National
\nElectric Vehicle Policy Board (EV board) approved the second phase of EV Package, known
\nas EV 3.5<\/a>, for four years (2024-2027), which replaced the EV 3
\nprogram started in 2022. As part of the EV 3.5 package, the
\ngovernment will provide subsidies for the purchase of electric
\ncars, electric pickup trucks and electric motorcycles based on the
\nvehicle types and battery capacities.<\/p>\n
\nsubsidies for hybrids, including plug-in hybrids (PHEV). This
\nhighlights the government's attention for promoting adoption of
\npurely battery-powered vehicles. However, the excise department has
\nproposed a slightly lower rate for hybrids and PHEVs starting 2026,
\ndepending on the CO2 emissions for hybrids and electric range on a
\nsingle charge for PHEVs. The rates are expected to increase yearly
\nby two percentage points every two years for HEVs.<\/p>\n
\nproduction must offset any CBU imports at a ratio of 1:2 by 2026
\n(two BEVs must be produced in Thailand against one imported CBU)
\nand 1:3 by 2027.<\/p>\n