The Cabinet on 19 December 2023 acknowledged the second phase of the electric vehicle (EV) program, known as EV 3.5, to promote the use of EVs in the country, following the approval of this phase by the National Electric Vehicle Policy Committee.

The EV 3.5 program will come into effect from 2024 to 2027, covering electric passenger cars, pick-up trucks, and motorcycles. As part of EV 3.5 measures, the Government will provide subsidies for the purchase of these EVs, based on the vehicle types and battery capacities. The subsidies will be provided as follows:

- Electric passenger cars priced not exceeding two million baht, with battery capacity not less than 50 kWh, will be subsidized in a range between 50,000 and 100,000 baht per unit. And those with battery capacity less than 50 kWh will be subsidized between 25,000 and 50,000 baht per unit.

- Electric pick-up trucks priced not exceeding two million baht, with battery capacity not less than 50 kWh, will receive a subsidy of 100,000 baht per unit.

- Electric motorcycles priced not exceeding 150,000 baht, with battery capacity not less than 3 kWh, will receive a subsidy of 10,000 baht per unit.

As for measures to encourage investment in EV production in Thailand, manufacturers will receive up to 40 percent cuts on import duties for completely built-up units, priced not exceeding two million baht, during the first two years (2024-2025). A reduction of excise tax from 8 percent to 2 percent will be offered to electric cars, priced not exceeding seven million baht.

The Cabinet also approved the extension deadline for EV registration under the first phase of the EV program (EV 3) from 31 December 2023 to 31 January 2024.

Under the EV 3.5 program, the Excise Department expects that a total of 830,000 EVs will receive support throughout the four-year period. The number is divided into 454,000 electric cars, 346,000 electric motorcycles, and 30,000 electric pick-ups. A fund of 34,000 million baht is also expected to be spent on the program during the period.