Thailand Approves Enhanced Incentives to Boost EV Use

[webfact]

 

by Natthaphon Sangpolsit

    

BANGKOK (NNT) - The Board of Investment (BOI) says Thailand has expanded incentives to boost the use of electric vehicles (EVs), as the kingdom looks to preserve its status as a major Southeast Asian auto production hub.

 

Duangjai Asawachintachit, secretary-general of the Board of Investment (BOI), told a news conference that smaller charging stations will now be eligible for three-year tax benefits - an extra incentive on top of a five-year corporate income tax exemption available to investments in charging stations with at least 40 chargers.

 

The BOI head said a condition barring investors from receiving additional benefits from other agencies, and a requirement for ISO certification, have also been removed.

 

She also said the revised measures are to ensure that "incentives stay relevant in a fast-changing business environment."

 

Keep up to date with all things Thailand - Join our daily ASEAN NOW Thailand Newsletter - Click to subscribe

 

Thailand is encouraging consumers to shift to EVs, with a goal of ensuring 30% of its total auto production output is EVs by 2030.

 

In the January-March period, overall foreign and Thai investment applications, including for the auto industry, were worth 110.7 billion baht (US$3.3 billion), down 6% from a year earlier due to global geopolitical and economic challenges.

 

However, foreign investment pledges alone rose 29% to 77.3 billion baht in the January-March period, with Taiwan, Japan and China as the top three investors.

 

Among targeted industries, the auto sector topped the list with an investment value of 41.6 billion baht, followed by agriculture and food processing with 12 billion baht, and electronics with 10.3 billion baht.

 

-- © Copyright NNT 2022-04-11

 

- Aetna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

 

[Puccini]

1 hour ago, webfact said:

 

The BOI head said a condition barring investors from receiving additional benefits from other agencies, and a requirement for ISO certification, have also been removed.

What does ISO certificaton for electical equipment and/or their installation mean in Thailand?

[Geoffggi]

Two points for consideration, where is all the added electricity coming from, secondly Thailand does not have a good safety record when it comes to electricity

[TorquayFan]

Thanks Webfact. I noticed this the other day and thought it very interesting. If you dig into the links behind the review in this you'll see comments are based on very detailed research carried out by VOLVO no less - surely it's credible. So, is Thailand necessarily right in following the style and the trend in trying to promote EV over ICE?

 

 

For me EV's are great for shorter journeys, commuting, shopping etc. but maybe impracticable for very long journeys around greater Thailand. But in and around pollution bound Bangkok - spot on.

 

However, if as suggested here, an EV has to do 146,000 km extra before it repays it's CO2 toll in manufacturing, the argument is wide open. And at some stage the massive battery packs will need replacing, exacerbating matters.

 

Horses for courses - EV's are excellent for pollution reduction in major Cities but otherwise, give me ICE with mine !

[vandeventer]

36 minutes ago, TorquayFan said:

Thanks Webfact. I noticed this the other day and thought it very interesting. If you dig into the links behind the review in this you'll see comments are based on very detailed research carried out by VOLVO no less - surely it's credible. So, is Thailand necessarily right in following the style and the trend in trying to promote EV over ICE?

 

 

For me EV's are great for shorter journeys, commuting, shopping etc. but maybe impracticable for very long journeys around greater Thailand. But in and around pollution bound Bangkok - spot on.

 

However, if as suggested here, an EV has to do 146,000 km extra before it repays it's CO2 toll in manufacturing, the argument is wide open. And at some stage the massive battery packs will need replacing, exacerbating matters.

 

Horses for courses - EV's are excellent for pollution reduction in major Cities but otherwise, give me ICE with mine !

I think it all comes down to cost of the EV. how many recharging stations there are, and how stupid I would look driving one of these cars. 

[hotchilli]

5 hours ago, webfact said:

The Board of Investment (BOI) says Thailand has expanded incentives to boost the use of electric vehicles (EVs), as the kingdom looks to preserve its status as a major Southeast Asian auto production hub.

Charging stations across the nation would be nice.

[Not just in Bangkok]

[poskat]

of all the issues facing thailand, increasing the use of EVs is very far down the list.

EVs are a first world virtue signaling luxury

[JBChiangRai]

5 hours ago, Geoffggi said:

Two points for consideration, where is all the added electricity coming from, secondly Thailand does not have a good safety record when it comes to electricity

You are forgetting that electricity is different in Thailand, eg you don't need a ground connection and it won't travel uphill.

[JBChiangRai]

4 hours ago, vandeventer said:

I think it all comes down to cost of the EV. how many recharging stations there are, and how stupid I would look driving one of these cars. 

We have one already and a second on order for one of my daughters.  There are loads of recharging stations and some EV's are cheaper than their ICE equivalent (MG EP+ for example).  The running costs are massively less.

[TorquayFan]

That's great JB. I'll be interested to hear the story of your next journey to Bangkok in your EV.

 

With pollution in Chiang Rai your EV's will help of course, but the area where the EV was manufactured will suffer much more CO2 damage per vehicle than if you had bought ICE.

 

Running costs - electricity isn't costing more in Thailand (yet?) but of course, there's more CO2 produced when the recharge is generated for you . . .

 

I thought the VOLVO survey very interesting. I wonder if they have taken into account the disposal costs of the battery pack when expired and more pollution generated by your replacement set ?

 

Incidentally, I understand the power pack is unlikely to last longer than 10 years and replacement costs may be $5-10,000 dollars.

 

Also interesting is how the range might deplete after the power pack becomes older.

 

Lots to think about . . . .

 

[TorquayFan]

Here's the link to Volvo's impressive report

 

https://www.volvocars.com/images/v/-/media/project/contentplatform/data/media/my23/xc40-electric-light/volvo-cars-LCA-report-xc40.pdf