Government implements measures to promote the investment of electric vehicle batteries and support Thailand as a manufacturing hub

     The government has a policy to promote the use of electric vehicles (EVs) and promote the production of fully integrated electric vehicles in Thailand, so it has issued measures to promote investment in the production of electric vehicle batteries.

     Thailand has become attractive to global battery manufacturers who want to invest in the construction of electric vehicle battery factories, because the government has a policy to support and target the production of electric vehicles according to the “30 @ 30” policy, that is, 30% production in 2030.

    In addition, because the domestic electric car market has grown immensely through measures in finance and the use of electric cars, vehicle manufacturers from China and Europe, which are major customers of battery manufacturers, have already invested in the production of electric cars in Thailand. For these reasons, the meeting of the National Electric Vehicle Policy Committee agreed to issue measures to support the production of batteries, including the following:

• Reduction of excise tax from 8% to 1%;
• A grant of THB 24 billion for the production of cellular batteries in Thailand, which are the main component of the batteries in electric vehicles. The grant will depend on the size of the plant and the specific energy capacity of the batteries.

    Under 8 GWh will be funded between 400 and 600 THB/kWh, and over 8 GWh will be funded between 600 and 800 THB/kWh.

    Government subsidies given to battery manufacturers will help lower the production costs of electric vehicles, resulting in cheaper electric vehicles being sold in the market.

    There are also measures to drive the production of internal combustion engine (ICE) vehicles, which is the largest group in the country, as well as measures to enable the transition to the production of electric-powered vehicles. The government will also establish a sub-committee to oversee the conversion of used vehicles to electric vehicles (EV conversions).

    One of Thailand’s key goals is to drive its automotive industry to become one of the world's major electric vehicle manufacturing bases.

Source: Office of the Permanent Secretary, Office of the Prime Minister, Government House, Phitsanulok Road, Dusit, Bangkok 10300

Tel. +66 2283 4000 

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