In a move to encourage businesses to electrify their fleets, Thailand has expanded its incentive programs for electric vehicles (EVs).
The National Electric Vehicle Policy Committee (EV Board) has announced the introduction of tax reductions for companies with electric trucks and buses as well as cash grants for manufacturers of EV battery cells.
According to the EV Board, the incentives for electric-powered buses and trucks will be effective until December 31, 2025.
Companies purchasing domestically manufactured vehicles can deduct expenses equal to 2 times the actual vehicle price without a price ceiling. For imported vehicles, the deduction will be 1.5 times the actual price.
Eligible large EVs include container trucks, liquid trucks, hazardous substance trucks, special trucks, tow trucks, as well as both air-conditioned and non-air-conditioned electric buses.
“We believe this will significantly increase the adoption of electric trucks and buses, reduce pollution from the transportation and manufacturing sectors, and support companies’ moves to reach their net-zero targets.”, said Mr. Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI) and EV Board Secretary.
The EV board also approved a plan to stimulate the manufacturing of battery cells for EVs and energy storage systems (ESS). This will be provided through the Competitiveness Enhancement Fund and potentially other benefits available under the Competitiveness Enhancement Act.
“The measures to promote investment in the production of battery cells, a key element of the supply chain, will help ensure the sustainability and resilience of our EV ecosystem,” said Mr. Therdsteerasukdi.
Interested companies have until the end of 2027 to submit their investment project proposals. The approved measures are subject to final consideration and approval by the Cabinet before implementation.
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