Thailand Approves Incentives for Electric Trucks and Buses Adoption

Mar 2024

Thailand’s National Electric Vehicle Policy Committee (EV Board) just approved incentives to encourage companies to transition their commercial fleets of large trucks and buses to battery electric vehicles (BEV) and cash grants for EV battery cell manufacturers. The two policies are designed to further expand the country’s support for the whole EV ecosystem and reinforce its status as an EV manufacturing hub.

Thailand is the top automotive producer in the ASEAN region and ranks in the top 10 in the world for automotive production and total automotive exports. Regarding EVs, Thailand is the first country in Southeast Asia to offer special incentives to the whole supply side as well as the demand side and to have set a clear target under the 30@30 policy that at least 30% of the cars made in Thailand are EVs by 2030.

The support for the use of electric-powered buses and trucks will come in the form of special tax deductions granted to companies eligible under this scheme. It will be effective until December 31, 2025. Companies buying vehicles manufactured domestically will be able to deduct expenses of 2 times the actual price of the vehicles without a price ceiling being set. For the purchases of imported vehicles, the deduction will be equal to 1.5 times the actual price of the vehicles.

The large electric vehicles eligible for the incentives include electric trucks for commercial uses, such as container trucks, liquid trucks, hazardous substance trucks, special trucks, and tow trucks, as well as electric buses, both air-conditioned and non-air-conditioned vehicles.

The meeting also approved a plan to promote the manufacturing in Thailand of battery cells for EV and energy storage systems (ESS) by providing financial support via the country’s Competitiveness Enhancement Fund and possibly other benefits available under the Competitiveness Enhancement Act to companies meeting the criteria.

To qualify for investment promotion under this scheme, a company must meet the following requirements:

  1. Being a leading and well-recognized battery manufacturer providing batteries to EV manufacturers;
  2. Having a clear plan to produce battery cells for batteries used in EV and also, if possible, to produce battery cells for batteries used in ESS;
  3. The batteries must have a high energy density of not less than 150 Wh/kg;
  4. The battery must have a life cycle of not less than 1,000 cycles, counting from 70% of the nominal capacity at a depth of discharge of not less than 80% at a test temperature of 20-25 degrees Celsius.

Interested companies must submit their investment project proposals by the end of 2027.

Statistics as of 31 January 2024 show that, since the scheme started in 2022, 14 manufacturers and importers of BEV cars and pickups have registered 78,554 EV cars to enjoy the excise tax discounts and subsidies. According to the conditions of the EV3 scheme, these companies will have to produce in Thailand at least one vehicle for each imported vehicle.

(Source: Board of Investment of Thailand)

About Us

Orissa International helps companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 companies that includes distributors, resellers, system integrators and local manufacturers, that we have built through advising and guiding more than 5,000 companies with their market expansion into the ASEAN region over the last 25 years.

Orissa International is headquartered in Singapore, with additional offices in Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.

Our Services