Hyperdrive

Thailand Budgets $970 Million to Renew Electric Vehicle Hub Push

  • Cabinet approves tax cuts, subsidies to boost local production
  • More players expected to join EV race in the ‘Detroit of Asia’

Thailand has attracted a slew of Chinese EV makers such as BYD.

Photographer: Mariceu Erthal/Bloomberg
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Thailand will allocate 34 billion baht ($970 million) through to 2027 to fund its ambition of becoming a major production hub for electric vehicles, renewing a flagship incentive program in the Southeast Asian nation.

Foreign EV makers will be eligible to receive up to 40% cuts on import duties and a reduced excise tax rate of 2% for their completely-built electric cars brought into Thailand in 2024 and 2025, according to Narit Therdsteerasukdi, secretary-general of the Board of Investment. In return, EV makers will have to manufacture EVs locally in Thailand by 2027.