Thailand's National Electric Vehicle (EV) Policy Board has approved policy changes to provide EV manufacturers greater flexibility in fulfilling their domestic EV production obligations, as part of efforts to head off a potential domestic EV supply glut.
EV manufacturers in Thailand that received subsidies under the country's EV promotion measures previously signed up for domestic EV production commitments in proportion to the number of complete built-up (CBU) units they previously imported. With the latest policy change, every EV made for export will now count as one and a half units towards a manufacturer's obligations, said the board on 25 November.
"This is to incentivise automakers to increase exports and prevent domestic market oversupply," it said. EV manufacturers have also been granted the option to reduce their commitment quantity on vehicles they have not received subsidies for, if they repay the excise tax difference and accept "penalties".
Thailand's battery passenger EV production totalled near 50,600 units in January-October, more than fivefold higher compared to the same period a year earlier, according to Thailand's Federation of Thai Industries (FTI). Plug-in hybrid and hybrid passenger EV production came in at about 16,500 units and 175,800 units respectively, up by 225pc and 10pc on the year.
Meanwhile, passenger car production slowed by 4.7pc on the year to around 451,700 units in the same period, in contrast with growing EV production.
The policy changes have also allowed imported battery cells to be counted towards manufacturers' local content requirements to June 2026, from the previous deadline at the end of 2025, said the board. But a "clear domestic sourcing plan" will be required from manufacturers to support domestic battery manufacturing, it said.
The country in 2024 rolled over the unfulfilled portion of EV manufacturers' commitments under its first phase of EV promotion measures, asking its manufacturers to instead follow the conditions under the second phase measures. Manufacturers under the second phase measures are required to produce more EVs, in proportion to their previous CBU imports, which comes with a longer timeline.
Japanese and Chinese EV manufacturers such as Mazda, Isuzu, Changan Automobile and Chery Automobile have all zeroed in on the Thai EV market, investing in and setting up EV plants in the country.
Thailand's cumulative BEV registrations were around 342,200 units as of October, according to FTI. The country's EV promotion measures spurred more than 238,000 EV registrations as of September, according to the EV board.
