Thailand to ramp up EV production to 30 percent in a bid to reduce carbon emissions

Thailand to ramp up EV production to 30 percent in a bid to reduce carbon emissions

In 2020, Thailand developed some strategies to shape its electric vehicle (EV) industry. One of them was creating a committee to chair the EV agenda for the country. The committee, National Electric Vehicle Policy Committee (NEVPC), will accelerate Thailand’s national EV plan of producing 1.2 million EVs by 2036.

The Thai government also introduced incentives geared towards ramping up electric car sales. In November last year, the Board of Investment (BOI) directed new discounts for EV car users. Carmakers who produce hybrids will enjoy a three-year tax holiday, while those making fully electric vehicles will enjoy an eight-year tax holiday.

A few days ago, Thailand revealed its new plan of increasing the production of electric vehicles and hybrids, which will see EVs account for 30% of all cars produced between now and 2030. This will accelerate the climate change battle that is happening globally.

“The government wants to accelerate the use and production of electric vehicles, with national strategies focusing on the environment and air pollution solutions. Thailand already has an advantage by being a car-production hub, and it’s now time to focus on EVs,” said Suriya Juangroongruangkit, Industry Minister.

The rationale behind this plan is the high amounts of carbon produced annually by petrol and diesel cars. According to a survey done by Nissan Motor Company, Thailand car users are likely to buy an electric vehicle as a way of reducing carbon emissions. The study showed 91 percent of consumers looking for new cars are willing to buy an electric version to save the climate. Similarly, 43 percent of those who already have non-electric cars would shift to battery-powered vehicles in the next three years. Prime Minister Prayut Chan-o-cha’s government has encouraged the shift to battery-powered cars through giving rebates, tax holidays, and developing more charge stations.

“Some of the measures to stimulate the domestic market and achieve the 2030 goal include encouraging the use of electric vehicles by state agencies, tax benefits and parking discounts for buyers, more investment incentives for companies, and developing charging infrastructure across the country,” added Suriya. To achieve this target by 2030, the country will produce electric cars, motorbikes, and buses.

BloombergNEF analysts have since provided a report that backs the government’s plan and branding it a good move amidst Covid-19 setbacks. “Such initiatives would support the continued growth of EV sales. While the Thai EV market is still small, it showed great resilience last year despite the pandemic denting overall auto sales,” said Allen Abraham, an analyst at BloombergNEF.

Among companies who have been granted government rebates to boost their contribution to the EV industry include Nissan, Toyota, Mercedes-Benz, BMW AG, and Mine Mobility, a subsidiary of Energy Absolute. Energy Absolute is an electric services company based in Thailand.