On July 30th, the National Electric Vehicle Policy Committee of Thailand (referred to as the "Electric Vehicle Committee") approved adjustments to the incentive plan for the second phase of the electric vehicle support policy (EV3.5). The core change is to allow locally manufactured electric vehicles for export to be included in the domestic production quota, aiming to encourage car companies to build Thailand into a regional export base.
According to Thailand's first phase of electric vehicle support policy (EV3.0) launched in 2022, manufacturers participating in the policy are required to use localized production as a compensation condition for obtaining subsidies and import tariff exemptions. The Investment Commission of Thailand stated that the revised terms stipulate that for every battery electric vehicle (BEV) produced for export, 1.5 units can be included in the manufacturer's local production quota, which will make it easier for companies to meet production commitments.
In April of this year, Thailand achieved the first export shipment of 660 electric vehicles, and the plan proposed by the Federation of Thai Industries (FTI) is expected to increase the export quantity of electric vehicles to about 12500 by 2025 and to about 52000 by 2026. The Investment Commission of Thailand stated that EV3.5 will continue to promote Thailand as a regional automobile manufacturing base, making Thailand the largest automobile manufacturing country in ASEAN.
Since the launch of EV3.0 in Thailand in 2022, "local production" has always been a prerequisite for enjoying policy benefits - participating car companies need to set up factories in Thailand in exchange for subsidies and import tariff reductions. To obtain discounts, car companies must assemble electric vehicles locally in Thailand from 2024 and meet the production targets set by the Thai government.
Reuters analysis believes that the main reasons for this policy revision are the insufficient domestic market demand in Thailand and intensified competition from foreign car companies entering the market.
In the first half of 2025, the number of newly registered BEV passenger cars in Thailand was 57289, accounting for 15% of the total number of new car registrations in the country. The Investment Commission of Thailand stated in a statement that as of June, the total investment in Thailand's electric vehicle supply chain reached 137.7 billion Thai baht (4.5 Thai baht). Approximately 175000 pure electric vehicles and 34000 electric motorcycles have received subsidies totaling over 12 billion Thai baht under the EV3.0 and EV3.5 plans.
The revisions approved today will provide greater flexibility and strengthen Thailand's position as a regional leader in the automotive manufacturing industry, helping it become an important electric vehicle production base, "said Nali, Secretary General of the Investment Commission of Thailand and Secretary of the Electric Vehicle Commission
However, there are still variables in the external environment of Thailand's electric vehicle exports. On July 31st, Thai Finance Minister Phochai stated that he is in "further negotiations" with the United States on the details of new import tariffs and expects to obtain detailed information "within 24 hours". Regarding the previous report that "Thailand and the United States have reached a trade agreement", Pichai emphasized that the negotiation team is comprehensively considering trade data, international law, and the impact on industrial security, and said that the final tariff rate may be around 20%.
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