The National Electric Vehicle Policy Committee, or the EV Board, has approved measures to encourage companies to transition their commercial fleets of large trucks and buses to battery electric vehicles (BEVs).

The decision was made during its meeting on 21 February 2024, chaired by Prime Minister and Minister of Finance Srettha Thavisin. Under these measures, companies buying EVs manufactured domestically will be able to deduct expenses of two times the actual price of the vehicles, without a price ceiling being set. For the purchases of imported vehicles, the deduction will be equal to 1.5 times the actual price of the vehicles. 

The granting of the special tax deduction will be effective until 31 December 2025. The support for the use of electric powered buses and trucks will build on the EV3 and EV3.5 sets of measures taken earlier for passenger cars, motorcycles, and trucks. 

The Government believes that the tax incentives will accelerate the transition of large commercial vehicles to EVs, which will help reduce air pollution in the transport sector and develop Thailand into a regional hub for EVs.

The meeting also approved measures to promote investment in the manufacturing of battery cells for EVs and energy storage systems (ESS). Investors may seek financial support and other benefits from the Competitiveness Enhancement Fund, under the supervision of the Thailand Board of Investment (BOI).

The investors must meet the following requirements: (1) be a leading and well-recognized battery manufacturer providing batteries to EV manufacturers, (2) have a clear plan for the production of battery cells for EVs, and be able to produce battery cells for ESS, (3) produce battery cells, with a high energy density of not less than 150 Wh/kg, and (4) produce battery cells with a life cycle of not less than 1,000 cycles. Interested companies must submit their investment proposals by the end of 2027.

The Government’s measures to promote the EV industry has led to significant growth of the EV market in Thailand. Statistics show that more than 76,000 EVs were registered in 2023, an increase of 6.5 times over the previous year. As of the end of 2023, BOI granted promotional privileges to 103 EV projects, with a combined investment of 77,192 million baht.