The electric vehicle (EV) industry in Thailand is expected to grow rapidly after the pandemic is controlled, given the government's greater efforts to boost EV sales and production, says global consulting firm ABeam Consulting (Thailand).
In February, the cabinet approved a package of incentives including tax cuts and subsidies to promote EV consumption and production between 2022 and 2023.
The subsidies range from 70,000 baht to 150,000 baht depending on the type and model of vehicle, while there will be lower excise tax and import duties on completely knocked-down and completely built-up units.
Amid the push for the growth of the EV industry, Thailand also sees more companies entering the EV market, especially those from China, said Krzysztof Tokarz, ABeam's manager for automotive industry.
"Thailand is a major investment destination and a car production base in Asean. These can support the EV industry for domestic sales and export," he said.
The country has potential to be an EV production hub in Asean.
Thailand and Singapore are actively promoting EVs. Both are the first countries in the region to issue clear EV policies.
Singapore aims to adopt EVs by 100% within 2040 while Thailand's National EV Policy Committee announced last year it wanted EVs to constitute 50% of locally made vehicles by 2030.
According to ABeam, Thailand saw more than 3,000 new EVs registered from January to April this year.
The numbers are expected to keep increasing.
