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January 8, 2021

Tax changes could boost EV sales in Thailand

Thailand is discussing restructuring its vehicle excise tax, which is under study and tentatively planned to be implemented by 2026. This, it is hoped, will act as a catalyst to boost Thailand’s electric vehicles (EVs) sales.

By Sam Duke

Thailand is discussing restructuring its vehicle excise tax, which is under study and tentatively planned to be implemented by 2026. This, it is hoped, will act as a catalyst to boost Thailand's electric vehicles (EVs) sales.

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The country aims to achieve 30% share of EVs in total production by 2030.

The vehicle excise tax restructuring, presently under discussion with the industry stakeholders, will pave the way for increased adoption of eco-friendly vehicle and EVs in Thailand. The vehicle excise tax structure in Thailand is a levy tax based on CO2 emissions, with the restructuring aimed at increasing the tax rate on IC engine vehicles to the highest among all the vehicle categories.

It is hoped the move will help to bring down the price differences in IC engine and electric vehicles and make the EVs a more favourable product.

"The move is anticipated to gain support from the government as well as OEMs as the country has been struggling with harmful PM2.5 levels in the country," says Bakar Agwan, Senior Automotive Consultant at GlobalData.

The present vehicle excise tax varies between 20-50% for IC engine vehicles depending upon the type of vehicle and the engine capacity. For hybrid electric and fuel cell vehicles, the current tax rate is 10%, according to The Excise Department.

Agwan maintains that the excise tax restructuring will support the existing government efforts for EV ecosystem development in Thailand. "The government has been putting in other efforts to make EV a success story in Thailand which includes a possible car trade-in scheme on cards," he notes.

"This will stimulate the EV purchases in the country strengthening the EV infrastructure and also bagging new investments with new set of manufacturing privileges announced by the Board of Investment (BOI) Thailand."

Agwan adds that most of Thailand's EV boosting efforts have been focused on the supply/manufacturing side.

"The new vehicle tax and the possible car trade-in scheme will stimulate the demand/customer side. Thailand needs more such demand-side efforts in terms of incentives, subsidy, tax benefits etc. to witness an upsurge in EV adoption," he says.

Free Report
img

What does the future hold for the US electric vehicles market?

The US Electric Vehicles (EV) market has established itself as one to watch. Despite China maintaining the number one spot, the US holds significant standing as one of the major EV markets, with GlobalData’s whitepaper identifying a strong growth trajectory within the forecast period. This report further analyzes the trends, market drivers, and government incentives set to influence and facilitate the market.   This report also looks beyond the US and touches on environmental concerns set to drive the EV market worldwide.   Want to find out more? This report demonstrates GlobalData Explorer’s sector analysis capabilities, showing how you can:  
  • Get historical and forecast market sizing data, with country specific insight for 22+ of the world’s largest industries
  • Track sector dealmaking activity, to view aggregate volumes, specific deals and top investors for all major deal types in M&A, Capital Raising, and Partnerships
  • Analyze news from GlobalData Explorer’s News Database – enable screening and alerts by industry, company, geography and news sentiment for filtered insight
  • Identify and track the key disruptive trends that are keeping the top digital thought leaders talking through social media analytics
  Consult this report now to find out how you and your company can benefit from our Explorer platform.
by GlobalData
Enter your details here to receive your free Report.

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