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.

[Jeffrey346]

7 hours ago, redwood1 said:

 

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.....

Not true..  While sales of traditional internal combustion engine (ICE) cars were down, the EV penetration rate increased to 15.4% in 2024, as the EVs represent a larger share of the total car market.  China's BYD topped the list with 30,650 EVs sold last year, followed by Neta with 12,777 EVs and MG in third with 12,764. Tesla was the fourth top-selling make in Thailand with 8,206 cars, while Ora of Great Wall Motor rounded out the top five with 6,746 electric cars sold.

 

[SlappyMc]

On 3/10/2025 at 11:44 PM, snoop1130 said:

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

 

 

Of course, Thailand has the generating capacity, right? 

 

What we hear in the US:

 

In an unmanaged charging scenario intentionally chosen as an illustrative worst case, 12 GW of dispatchable generating capacity (the add-on capacity starting from two decades ago) is equivalent to the aggregate demand of nearly 6 million new EVs. 

 

The reality is:

 

278,870,464 vehicles were registered in the US in 2022. Just under 100 mil were cars (98+ mil).

 

Will be roundly entertaining, when some, many, try charging during peak demand. For those old enough, recall the days of even numbered, odd numbered when it came to filling the tank with gas. Fun times once again. Maybe they might try the end case, we're all electric, and then try grasping how many can pull into the station with 4 islands, 2 pumps per, and how many tanks can be filled in an hour versus how many having to charge.  As of now best case scenario for EV is 30 minutes from empty to full. Have fun with that.

 

Almost forgot:

 

"Hybrids are an over complication"

 

Not if your hybrid has regenerative breaking. A win-win, since the combustion helps with storage as does the regenerative braking. The joy of paying $20 at the station, once every two months, and never having to charge.

 

Lastly, what is this tax rate madness? If by tax you mean, registration,that is solely vehicle weight. If you mean, miles driven, that's the tax on your gas at the pump (drive more, buy more gas, pay more gas taxes)(or haven't they figured that out either?).

 

I won't even bother addressing the patent lunacy of, key player in the global automotive landscape.  For all their smiles, can't they just be happy?