Finance Ministry Revises Old-for-New Vehicle Scheme Amid Implementation Challenges

Thailand’s proposed “old cars for new cars” trade-in scheme may not move forward in its original form, as the government continues to face difficulties in finalising key details related to used-car valuations, scrapping procedures, and eligibility requirements.

According to Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, the Excise Department is still conducting further studies on the proposal, which is intended to support Thailand’s transition toward electric vehicles (EVs) and modernise the country’s automotive industry. However, several unresolved issues have delayed progress on the scheme. 

The most significant challenge involves fairly assessing the value of old vehicles. Cars of the same age may vary considerably in condition depending on maintenance and usage, making it difficult to establish standard pricing criteria. However, relying heavily on officials’ discretion could lead to disputes over vehicle valuations and concerns about fairness.

Another major obstacle is the absence of a clear vehicle scrapping system. Authorities are still considering how dismantled vehicles, including reusable parts, scrap metal, and batteries, would be processed and recycled efficiently, particularly as the policy is linked to Thailand’s broader EV development strategy.

The Ministry of Finance is also reviewing age requirements for participating vehicles, with discussions ongoing over whether eligible cars should be at least five, 10, or 15 years old. Lavaron noted that the final proposal could differ significantly from the original trade-in concept if a more practical and effective approach is identified.

Officials have also expressed concern that prolonged uncertainty surrounding the scheme could slow automobile purchases, as consumers may postpone buying decisions while waiting for clearer details.

The project is expected to be funded under the government’s proposed 400-billion-baht emergency borrowing decree, aimed at accelerating economic stimulus measures and supporting Thailand’s EV transition