The Excise Department and Mercedes-Benz Manufacturing (Thailand) on Friday signed a memorandum of understanding to promote the use of electric vehicles (EVs) under the government's subsidy scheme.
Excise Department director-general Ekniti Nitithanprapas said the signing reflects the company's interest in supporting EV use in Thailand.
The government's comprehensive EV promotions include a reduced EV import duty and EV excise tax.
He said Mercedes-Benz is the 12th car manufacturer to sign up for the scheme.
Honda's car manufacturing unit is expected to join the scheme next year after motorcycle producer Thai Honda signed the agreement two months ago.
Participants are required to sell discounted battery electric vehicles (BEVs) to consumers.
The scheme provides a subsidy for EV passenger cars with no more than 10 seats and a maximum recommended retail price of 2 million baht.
It provides subsidies of 70,000 baht and 150,000 baht to participants, depending on the battery capacity.
For example, vehicles with a battery capacity of 10 kilowatt-hours (kWh) to less than 30kWh will receive a subsidy of 70,000 baht per unit.
Vehicles with a battery capacity of 30kWh or higher receive a subsidy of 150,000 baht per unit.
The department already provided the first tranche of the subsidy, worth 81 million baht to electric car and electric motorcycle manufacturers in the scheme. The amount covers 540 vehicles.
The agency is preparing to provide the second subsidy amount of 194.5 million baht for 1,297 vehicles, Mr Ekniti said.
He predicts this year the number of electric cars and motorcycles booked and sold under the scheme to total 25,000 units.
