Thailand adjusts EV policy to ease production requirements, boost exports

BANGKOK, July 31 (Xinhua) -- Thailand on Wednesday approved adjustments to its key incentive programs to encourage manufacturers to boost exports of battery electric vehicles (BEVs), aiming to cement the country's position as a regional EV production hub.

Manufacturers participating in the Thai government's EV program, which began in 2022, are required to produce vehicles locally as compensation for receiving subsidies and import duty waivers.

Under the revised terms, one BEV produced for export will be counted as 1.5 vehicles toward a manufacturer's local production quota, making it easier to meet production commitments, according to the Board of Investment (BOI).

"The revisions will allow greater flexibility and help Thailand, which is already the leader in the region's automotive manufacturing industry, to become a key EV production base," BOI Secretary General Narit Therdsteerasukdi said.

The policy adjustment comes as total investment in the kingdom's EV supply chain reached 137.7 billion baht (about 4.21 billion U.S. dollars) as of June, the BOI said in a statement.

The move is expected to increase the Southeast Asian nation's EV exports to approximately 12,500 units in 2025 and 52,000 units in 2026, as proposed by the Federation of Thai Industries.

In the first half of 2025, new BEV passenger car registrations surged 52.4 percent over a year earlier to 57,289 units, accounting for 15 percent of all new car registrations in Thailand.

So far, the government has granted subsidies totaling over 12 billion baht (about 367.82 million dollars) for 175,064 BEV cars and 34,559 electric motorcycles under its EV 3.0 and EV 3.5 schemes. ■