2024-02-25 00:05:00
Unraveling the code for Thai EV policy success After making sales last year of more than 76,000 vehicles, growing 6.5 times and having requests to promote investment in related projects. The BOI Secretary-General said that the key is to design policies that are flexible and ready to adapt to the world. From working together between the public and private sectors
- The policy to promote EVs in Thailand is considered successful when considering sales. and investment in related industries
- The success of this policy is not a result of chance but a result of collaboration between the public and private sectors.
- BOI Secretary-General as Secretary of the National EV Board talks about the origins of designing policies that meet the needs of both vehicle users and manufacturers.
- The key is listening. Design policies to be flexible and ready to adapt to rapidly changing situations and technology
Measures to promote the Thai electric vehicle industry that can stimulate the electric vehicle (EV) market in the country to grow exponentially, including the industry and related supply chains have come to invest in large amounts, as evidenced by the number of EV car registrations reaching more than 76,000 vehicles in 2023, an increase of 6.5 times from 2023.
This has led to substantial investment in the EV industry in Thailand. As of the end of 2023, the Board of Investment (BOI) has promoted the EV industry for 103 projects with a total investment of 77,192 million baht, divided into:
- EV car 18 projects 40,004 million baht
- 9 EV motorcycle projects, 848 million baht
- EV bus and EV truck, 3 projects, 2,200 million baht
- Batteries for EV vehicles and energy storage systems (ESS) 39 projects 23,904 million baht
- Important parts: 20 projects, 6,031 million baht
- Electric charging stations, 14 projects, 4,205 million baht
The success of Thailand’s EV promotion policy has made Thailand a focal point for EV car manufacturers around the world. including industry and many related supply chains are considered successes of the policy drive. Lessons from the success of this policy drive should be drawn. To lead to other policies that create benefits for the country’s economy in the future.
Make policies on the database Listen to every sector
Narit Terdsathisak Secretary-General of the Board of Investment (BOI) as committee member and secretary National Electric Vehicle Policy Committee (EV Board) Said that Thailand’s EV policy is considered to be data-based policy. World demand trends Changes in technology are taken into account. The opinions of private sector entrepreneurs, both domestic and international, were listened to in a comprehensive manner. Thailand’s EV policy has therefore changed. and flexible enough to accommodate market situations and technology changes in the future
“Right now we have EV 3.0 and EV 3.5 policies. There may be further changes. As for asking about the EV4.0 policy There isn’t one today, but it might be in the future. Including hydrogen fuel which is being used more. We are keeping an eye on whether it will develop commercially or not. As for technology, today we have measures covering cell-level technology that supports investment in battery factories in order to bring leading technology into investment in Thailand.”
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Thai EV measures cover all aspects.
If compared to other countries, Thailand’s EV support policy is considered progressive because it is a comprehensive measure in every aspect. In addition to measures for manufacturers There are also measures given to users such as Measures related to charging infrastructure There is also a special electricity rate given by the Ministry of Energy for public charging stations, which has several measures that complement each other, making it a clear and concrete success.
Thailand’s EV promotion measures are continuing to drive forward after the promotion of passenger cars was very successful. Recently, there have been continuous measures coming out. To support large vehicles, including electric buses (E-Bus) and electric trucks (E-Truck), the latest National EV Board meeting on February 21 approved measures to support the use of electric vehicles. large commercial The measure will allow companies or juristic partnerships to deduct expenses in calculating corporate income tax for purchasing electric buses and electric trucks. Use without setting a high price ceiling. In the case of purchasing a vehicle produced/assembled within the country Expenses can be deducted 2 times and in the case of importing ready-made cars from abroad. Expenses can be deducted 1.5 times. This measure will be effective from the Royal Decree that the Ministry of Finance will issue until the end of 2025.
The meeting assigned the Ministry of Finance through the Revenue Department to consider, determine guidelines and proceed with the next steps, with the expectation that both types of vehicles will be EVs. There are approximately 10,000 vehicles in this project, divided into approximately 6,000 buses and approximately 4,000 trucks.
Supporting production of EV batteries at the cellular level
In addition, in order for Thailand to become a major player in the EV industry in the region or the world, there are measures to promote investment in the production of cell-level batteries for electric vehicles. and energy storage systems (ESS) to attract cell-level battery manufacturers. which is an upstream production that uses high technology to be invested in the country by “battery” It is considered the heart of the EV industry.
Currently, there are many domestic manufacturers of batteries at the module and pack level. But we are still missing an important upstream part, which is battery production at the cellular level. This is a process that uses advanced technology and high investment. The issuance of promotional measures this time To attract the world’s leading companies to produce in Thailand This will not only help fulfill the supply chain of the V-Thai industry. But it also helps other industries that use energy storage systems (ESS), which is in line with the global trend towards clean business operations.
Set 4 conditions to support investment in battery factories
Investors will be able to request benefits and financial support from the fund to increase the country’s competitiveness. Under the conditions of the BOI There are 4 basic conditions for investors:
Aiming to attract world-class battery cell manufacturers
This supports investment in battery factories at the cell level. The BOI and the National Competitiveness Enhancement Policy Committee will consider determining the details of the criteria and guidelines next. In providing investment support, negotiations will be conducted on a company-by-company basis. depending on technology Size of production capacity that will be invested in Thailand Including customers who use the batteries of that operator. Thailand wants to bring world-leading entrepreneurs with investment at the cellular level into Thailand.
Subsidy up to 50% of investment value
Currently, there are leading companies that have this technology. There are companies from China, Japan and South Korea. Chinese companies include Contemporary Amperex Technology (CATL), Gotion, SVOLT ENERGY TECHNOLOGY or SVOLT, BYD Company, China Aviation Lithium Battery Co. (CALB), Sanvoda Electric Company. Hikle Battery Co., Ltd., EVE Company, Japanese companies include Panasonic, and South Korean companies include Samsung, LG, and SK Battery. Thailand expects to have leading companies with advanced technology invest in Thailand. The highest benefit that can be provided through the Competitiveness Enhancement Fund is a subsidy for building a battery factory of 30 – 50% of the investment value.
Adjust EV3.5 measures to be more comprehensive.
National EV Board It was also agreed to improve measures to support the use of electric vehicles in Phase 2 or EV3.5, such as expanding the scope of eligible electric vehicles to cover passenger vehicles with seats not exceeding 10 people and increasing the specifications of electric motorcycles. In the case where the battery size is less than 3 KWh but has a longer running distance. 75 kilometers per charging cycle Including safety standards Can join EV3.5 measures to meet the needs of more entrepreneurs as well.
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