Thailand Proposes Reserving Emergency And Necessary Expenditure For EV3.0 Policy
The Finance Ministry in the Southeast Asian nation, Thailand, has suggested a proposal for reserving an additional 50 billion baht under the EV3.0 policy. This measure was proposed to manage potential emergency or necessary expenditures. This initiative comes as the EV3.0 policy, which provides tax incentives for electric vehicle (EV) importers and subsidies for EV purchases, is slated to end on December 31.
The National Electric Vehicle Policy Board, a key player in the nation’s transition towards electric mobility, has raised concerns about the depletion of funds for subsidies, given the accelerating rate of EV purchases. Initially, the EV3.0 policy was equipped with a budget of 29.23 billion baht.
Subsidies Under the EV3.0 Policy
The EV3.0 policy provides multiple levels of subsidies based on the specifications of the EV. For instance, a subsidy of 70,000 baht is granted for EV cars equipped with a 10 to 30kWh battery. This applies to both completely knocked-down and completely built-up units. For vehicles featuring a capacity of more than 30kWh and a recommended retail price of less than 2 million baht, the subsidy increases to 150,000 baht. Electric motorcycles, another growing market segment, are also taken into account, with an 18,000-baht subsidy available for buyers of models with a recommended retail price of less than 150,000 baht from eligible manufacturers.
Rising EV Registrations: The Trigger for Additional Funding
The Electric Vehicle Association of Thailand reported about 37,000 EVs were registered in Thailand within the first seven months of this year. This is a notable surge from the 9,600 registrations recorded in 2022. Given this upward trajectory, the association forecasts that EV registrations will cross the 50,000 units mark in 2023.
Implications of the Proposed Additional Funding
With the proposed allocation of an additional 50 billion baht under the EV3.0 policy, the Finance Ministry aims to prevent an early exhaustion of subsidies due to the surge in EV purchases. The subsidies offered under the EV3.0 policy are instrumental in encouraging the adoption of EVs, but the policy is set to expire at the end of this year. The additional funding proposed by the Finance Ministry, if approved, could potentially extend the life of these subsidies and support the continued growth of EV registrations in the nation.
The proposed additional funding highlights the Thai government’s commitment to promoting the adoption of EVs. As the demand for EVs continues to grow, proactive measures like this will play a crucial role in ensuring a smoother transition to electric mobility in the country.
Subscribe to BNN Breaking
Sign up for our daily newsletter covering global breaking news around the world.