Thailand is planning a new subsidy scheme, called EV3.5, to promote domestically made electric vehicles (EVs) from 2024 to 2027. The program aims to maintain Thailand's status as a major auto assembly hub by offering up to THB100,000 (USD2,790) per car in subsidies. The current subsidy scheme, which provides THB70,000 to THB150,000 per EV, will expire in 2023. Thailand also plans to reduce import duties on fully assembled EVs by up to 40% in 2024 and 2025. The government seeks to have EVs make up 30% of vehicle sales by 2030 and has already attracted investments from Chinese and European EV manufacturers. In Q2 2023, EVs accounted for 6.4% of passenger car sales in the region, up from 3.8% in Q1, with Thailand, Vietnam, and Indonesia leading EV sales in Southeast Asia, with Chinese automakers taking the lead.

Source: ESGNewsasia