China · Bangkok Post
Warning over risk to Thai EVs when subsidies end
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The Federation of Thai Industries (FTI) is concerned that the expiration of the government's electric vehicle (EV) incentive programme in 2027 could leave Thailand vulnerable to a surge of Chinese EV imports and weaken local automotive supply chains.
Key facts
- The Federation of Thai Industries (FTI) is concerned that the expiration of the government's electric vehicle (EV) incentive programme in 2027 could leave Thailand vulnerable to a surge of Chinese EV imports and weaken local automotive
- The scheme, known as EV3.5, runs from 2024 to 2027 and provides tax cuts and subsidies to automakers in exchange for investment in battery electric vehicle (BEV) assembly plants in Thailand.
- Historically, pickups accounted for roughly 60% of Thailand's total vehicle production, with passenger cars at 40%
- The balance has reversed, with passenger cars representing 60% of output today.
- Chinese carmakers have already been importing vehicles from China and are expected to increase volume after 2027, as operating costs in Thailand may be higher than imports that benefit from the Asean-China Free Trade Agreement, which
- Thailand's car manufacturing peaked at 2.45 million units in 2013, but stricter auto loan criteria and global economic pressures have reshaped the market.
Summary
The scheme, known as EV3.5, runs from 2024 to 2027 and provides tax cuts and subsidies to automakers in exchange for investment in battery electric vehicle (BEV) assembly plants in Thailand.
Suwat Supakandechakul, newly appointed chairman of the FTI's Automotive Industry Club, said the government must prepare additional measures to sustain the sector once the programme ends.