The government has allocated 24 billion baht to fund the production of battery cells for electric vehicles domestically (EVs).
Energy Minister Supattanapong Punmeechaow stated that the subsidy was one of the initiatives approved by the National Electric Vehicle Policy Committee at its first annual meeting. The governmental subsidy is anticipated to assist manufacturers in reducing production costs, thereby making EVs more accessible on the home market.
In addition, the committee will take further measures, such as a reduction of the excise tax on manufacturers of EV batteries from 8% to 1%. It is anticipated that these incentives will increase domestic production of EV battery cells, with the aim of establishing a complete EV manufacturing base in Thailand.
Due to the restricted budget, the energy minister cautioned that these subsidies will be granted on a “first-come, first-served” basis.
Due to a variety of positive aspects, Thailand has attracted the interest of many renowned battery manufacturers, who are establishing plants in the nation, according to the ministry.
These causes include a clear government policy on electric vehicles, a surge in local demand for EVs, and large investments by Chinese and European EV manufacturers.