Thailand Proposes Tax Incentives to Boost Plug-In Hybrid Vehicle Production

[snoop1130]

A plug-in hybrid vehicle charging | Photo via Rathaphon Nanthapreecha/Pexels

 

Thailand is set to revamp its tax incentives for plug-in hybrid vehicles (PHEVs) in a bid to stimulate domestic production and adoption. Deputy Finance Minister Paopoom Rojanasakul announced the proposal, which plans to link tax rates to a vehicle’s battery charge travel range, with potential implementation from 2026, pending Cabinet approval in April.

 

The new tax structure marks a shift from the traditional method of taxing vehicles based on carbon emissions. Instead, PHEVs with longer electric ranges will benefit from lower tax rates. This move aims to encourage the manufacturing of more efficient vehicles, helping boost the automotive sector.

 

Significantly, restrictions on fuel tank sizes for PHEVs will be lifted under this proposal. Current tax regulations impose a 5% tax on PHEVs with an electric range over 80 kilometres, while those with less cover face a 10% rate. Details of the proposed system will be clarified post-Cabinet approval.

 

 

Additionally, Thailand's Excise Department is revising the battery tax structure to favour environmentally sustainable options. The existing flat 8% excise tax on all batteries will transition to a tiered system. Batteries with longer lifespans and higher energy density will have lower tax rates, while disposable batteries will incur higher taxes.

 

As Southeast Asia’s leading automotive production hub, Thailand is keen to revitalise its industry amid a downturn. Auto production dropped by 10% last year, with both domestic sales and exports declining significantly. The influx of investment from Chinese EV manufacturers like BYD and Great Wall Motors, totalling over US$3 billion, underscores the competitive pressure in a sector crucial to Thailand’s GDP.

 

By tailoring tax policies to incentivise innovation and sustainability, Thailand aims to reinforce its position as a key player in the global automotive landscape while adapting to evolving consumer and environmental demands, reported The Thaiger.

 

-- 2025-03-11

 

 

[mfd101]

And what about non-P HEVs? which is what I'm interested in.

[redwood1]

 

They can not hardly give away EVs these days even after all the endless rebates and discounts....Even after EVs have deprecated 60-70% in a year or two they are still not selling.....

[Ben Zioner]

Hybrids are an over complication.  But they are a nice way to keep cars expensive, while western manufacturers feel threatened by the reality that EVs, being lean pieces of engineering, will end up being a lot cheaper then ICEs. And the Chinese have been paving the way.

[Purdey]

Whatever happens to solar panels on roofs?

Brands like Lightyear made progress but this is an area to be explored.