BANGKOK, Thailand – Thailand is finalizing a new support package aimed at encouraging wider use of electric vehicles, with the Finance Ministry indicating that the scheme will involve several mechanisms rather than relying solely on vehicle price reductions. Finance Ministry Permanent Secretary Lavaron Sangsnit said officials had reached agreement on many elements of the program supporting the transition of public transport toward alternative and clean energy, while remaining details are being drafted for consideration by the relevant screening committee.
For the Excise Department’s EV transition program, Lavaron said the overall framework was now expected to be settled, with officials preparing the details for submission. He stressed that the measures would need to take several factors into account, including the different characteristics of each type of vehicle. Electric motorcycles, passenger cars and other vehicle categories may require different incentives rather than a single approach based only on price.
The Excise Department has previously discussed several options with the Finance Ministry, including subsidies channeled through financial institutions providing loans to EV buyers.
Excise Department Director-General Pornchai Theeravej said the department had prepared two or three possible models, including a one-time subsidy designed to make the program straightforward to administer. One option would provide compensation or a discount against the amount financed, while another could involve support through interest rates. Using financial institutions would also allow lenders to help screen applicants and verify their eligibility for the program, rather than having the government make direct payments to every buyer.
For consumers purchasing EVs with cash, officials are expected to develop a separate subsidy mechanism suited to those purchases. The new program will differ from the previous EV 3.5 scheme. While EV 3.5 focused on providing assistance to vehicle manufacturers and businesses, the new measures are being designed to provide assistance directly to people purchasing electric vehicles. Officials are expected to present the completed details for further consideration before the new support measures are implemented.
