Thailand's National Electric Vehicle Policy Council announced on Wednesday (November 1) that from 2024, the purchase subsidy for electric vehicles (EVs) will be reduced from the current maximum of 150,000 baht to a maximum of 100,000 baht (about 2,764 U.S. dollars)..5 "plan) valid until 2027。

"EV3.Adopted at a meeting of the Investment Committee, chaired by Thai Prime Minister Srettha Thavisin, the new plan aims to promote the development of the country's electric vehicle industry and create opportunities for increased investment in local production of electric vehicles, electric pickups and electric motorcycles.。Earlier targets by the Thai government indicated that by 2030, Thailand will strive to become a mature regional electric vehicle production center, when electric vehicles will account for 30% of vehicle sales.。

Research firm BMI estimates, "EV3.5 "plan will cost about 3 billion baht。As the largest automotive hub in Southeast Asia, Thailand hopes to continue its strong electric vehicle sales momentum while balancing its budget。

                

New "EV3.A Brief Analysis of the 5 "Plan

                

According to Narit Therdsteerasukdi, Secretary General of the Board of Investment of Thailand, the revised "EV3".5 "The plan stipulates that the subsidy will be based on vehicle type and battery size to promote local production of electric passenger cars, pickups and motorcycles。Specific programs are as follows:

• For electric vehicles with a price of less than 2 million baht and a battery capacity of at least 50 kWh, each vehicle will receive a subsidy ranging from 50,000 to 100,000 baht; for vehicles with a battery capacity of less than 50 kWh, each vehicle The subsidy is 20,000-50,000 baht。
• For electric pickups with a price of less than 2 million baht and a battery capacity of at least 50 kWh, the subsidy per vehicle is between 50,000-100,000 baht。
• For electric motorcycles with a price of less than 150,000 baht and a battery capacity of at least 3 kWh, each subsidy is 5,000-10,000 baht。

The consumer sector was also instructed to extend the registration period for electric vehicles from the end of December to the end of January next year so that buyers who buy electric vehicles during the Thailand International Auto Expo in December can apply for subsidies.。

Moreover, in order to encourage investment in the production of electric vehicles, the government has decided to reduce import tariffs by up to 40% in 2024 and 2025 for electric vehicles sold for less than 2 million baht, while the consumption tax rate for electric vehicles sold for less than 7 million baht will be reduced from 8% to 2%.。The condition is that the importer will produce 2-3 electric vehicles locally for each imported electric vehicle in 2026 and 2027, respectively。

In addition, the batteries of imported and domestically produced electric vehicles must meet industrial product standards and be tested in accordance with the global standards of the national automobile testing and R & D infrastructure project。

Last month, Thai Prime Minister Srettha Thavisin ordered state agencies to buy electric cars to replace older vehicles, expand the construction of charging stations across the country, and limit the price of insurance for electric vehicles to a reasonable range.。

                

Subsidy cut is actually "curve rescue"

                

Narit said the surge in electric car sales this year was due to the government's previous "EV3".0 "Subsidy Plan。

In the first phase of electric vehicle subsidies in 2022, a total of 13 brands from 15 companies will participate, including electric vehicles, pickups and motorcycles。Since 2017, the cumulative investment in the electric vehicle industry (including cars, batteries, parts and charging stations) has reached 61.4 billion baht。

In the first nine months of 2023, the total number of newly registered electric vehicles was 50,340, an increase of about 7% over the same period last year..6 times。In the second quarter of this year, Thailand's electric vehicle sales accounted for about half of the total electric vehicle sales in Southeast Asia.。

At first glance, the new plan seems to reduce consumer tax rebate benefits, but in fact, incentives for automakers and battery manufacturers are aimed at reducing their production costs, thereby making electric vehicles cheaper and reducing the need for consumer subsidies。

Surapong Paisitpatanapong, vice-president of the Federation of Thai Industries (FTI) and spokesman for the Automobile Industry Club, said that "EV3.5 "plan fits Thailand's current reality, although it is not as attractive as" EV3.0, "but still helps promote the development of the local electric vehicle industry and stimulate foreign investment。

informed sources disclosed that,Thailand's Investment Commission has approved 23 electric vehicle production projects from 16 manufacturers, and two Chinese brands have dominated the Thai electric vehicle market.。

Great Wall Motor (Thailand) went public in 2020 and sold 5,219 electric vehicles in the first half of 2022, ranking first。BYD is also building a plant in Rayong, which is expected to have an annual capacity of 150,000 vehicles from 2024, with a total investment of 17 billion baht.。

The latest addition is China's Changan Automobile, which plans to produce 58,000 battery electric vehicles and 36,000 plug-in hybrid vehicles each year。

However, in "EV3.5 "plan before the release of the industry has been a different voice。Some producers call, hope government will "EV3.The "0" plan is extended for at least another 6 months to ease concerns about the price difference between local and imported electric vehicles。

Krisda Utamote, chairman of the Electric Vehicle Association of Thailand (EVAT), said: "If the EV3.5 The plan to start at the same time as the sales of local manufacturers will make it lose its price advantage, especially compared to electric vehicles imported from China。"

                

"EV3.5 "plan or will benefit certain stocks

                

Asia Plus Securities (ASPS) said that stocks related to electric vehicles and battery production are expected to increase from EV3.5 Benefits of the Plan。

The ASPS said: "Next year's EV3.5 The plan will boost investor confidence in Thailand and help the development of the domestic electric vehicle industry。Investors can make short-term speculative investments in stocks that may benefit from such policies.。"

The agency also said that the companies expected to benefit are mainly industrial real estate companies, with WHA being the first.。Other beneficiaries include EV producers Energy Absolute (EA), Nex Point (NEX) and PTT, and EV battery producers Global Power Synergy (GPSC) and EA。

Electric vehicle charging station manufacturers should also be helped, including EA and PTT Oil & Retail (OR)。ASPS said that if the electric vehicle subsidy policy is continued, companies that produce electric vehicle-related electronic parts such as Delta Electronics (Thailand), KCE Electronics and Hana Microelectronics will also benefit.。