A Resolution to Pursue: Thailand Focuses on Electric Vehicle Production

As part of efforts to address harmful air emissions, Thailand will seek to make hybrid cars responsible for 30 percent of automotive manufacture by the end of the decade.

The government aims to step up the use and manufacture of electric vehicles with national policies based on environmental and air emission solutions. Thailand still has the benefit of being a centre for automotive manufacture and it is now time to concentrate on EVs.

While the total contribution of vehicles to emissions is much lower than other sources, such as crop burning or forest fires, a survey commissioned by Nissan Motor Corporation found that regardless of the environmental effects, 91 percent of Thais cannot purchase an EV.

The survey showed that over the next three years, 43 percent of Thai non-EV owners would choose an EV for their next car purchase. Promoting the use of electric cars by state departments, tax advantages and parking concessions for consumers, more investment incentives for businesses, and the construction of charging facilities around the country are some of the steps to stimulate the domestic market and achieve the 2030 target.

He added that the 30 percent target would include cars, motorbikes and buses.

For them such interventions will help continued growth of EV sales in Thailand.

While the Thai EV demand is still poor, amid the pandemic denting overall car sales, it showed great resilience last year. In 2020, EV car sales rose by 1.4 percent, while normal vehicle sales dropped by 26 percent.

Consequently, More than a dozen firms have already been given EV rights by Thailand’s Investment Commission, including Nissan, Toyota Motor Corp, Mercedes-Benz AG, BMW AG, and Energy Utter Pcl’s Mine Mobility.

In fact, In November, the government approved new measures to improve EV production and its supply chain, including a three-year tax holiday for plug-in hybrid car manufacturers and an eight-year corporate income tax waiver for makers of battery-powered electric vehicles.