Thailand has had separate eco car and EV schemes in recent times. The programmes were for certain types of vehicles – affordable small cars for the former, of which two phases have already been introduced; and hybrid, plug-in hybrid or electric for the latter – and carmakers were enticed with tax breaks and exemptions for their efforts.
Now, the Thai government has concocted another scheme, and the Eco EV programme combines a bit of both the earlier schemes, as its name suggests. Affordable electrified eco cars is the name of this game, and the kingdom’s Office of Industrial Economics (OIE) has met with Toyota, Honda and Nissan to discuss the scheme and offer incentives.
“Eco EV is aimed at closing any loopholes after the government launched the EV scheme in late March 2017, as the scheme should not be an obstacle to the current eco-car scheme. The OIE has found that the existing EV scheme was ineffective at boosting mass-market production of EVs and localising the manufacture of EV-related vital components,” said OIE director-general Nattapol Rangsitpol, reported by the Bangkok Post.
Nattapol elaborated by describing the current EV scheme is a “free and open ticket” for carmakers to produce any green car in any vehicle segment. “Locally there are only high-end hybrid EVs priced above one million baht, same as before the scheme,” he said.
The OIE’s proposal was for mild hybrid cars to be turned into affordable Eco EVs. “The mild hybrid under the Eco EV programme can offer prices ranging from 500,000 to 700,000 baht, equivalent to eco cars that are available in the local market,” Nattapol said. The country’s excise department said that Eco EVs may be taxed at 4%, on a par with hybrids and much lower than the 10-14% of today’s eco cars.
However, the top three Japanese carmakers that have Thailand as their regional base – Toyota, Honda and Nissan – said no thank you. The OIE man said the companies wanted to wait for the market mechanism to catch up and for EV excise tax incentives to expire in 2025.
However “by 2025, Eco EV will not be appropriate for the technological landscape and Thailand’s automotive industry will be far behind other countries,” he lamented.
The three carmakers asked for a one-year extension to the offer. Nattapol said the OIE will continue working on the programme with other eco car companies. Besides Toyota, Honda and Nissan, the other eco car participants were Mitsubishi, Suzuki and Mazda.
Those who have received Thailand’s Board of Investment EV incentives so far include Mazda and Toyota in the regular hybrid category, plus Mercedes-Benz, BMW and SAIC Motor (MG) in the PHEV category. Learn more about Thailand’s green car local assembly incentives here.
Making basic small cars may be profitable if you know how, but perhaps throwing in hybrid tech/batteries will also throw away the business case for the Japanese giants. But with a bigger carrot, who knows?
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Malaysian Govt, are you paying attention to this news?
No, flying car is what the rakyat needs. Fullstop.
Malaysian Gomen all tidur. They need to wake up and start working hard. Too used to goyang kaki past 20 years.
That’s because they now have incompetent ministers who sleep all the time dreaming of flying cars. When the head is not working, why expect the subordinates to do all the work?
Those japanese carmakers Toyota, Honda, Nissan, Mitsubishi, Suzuki and Mazda would rather set up shop and pour billions of FDI in Malaysia with big pool of high knowledge workers
No. They are going to Singapore. Everyone is keeping a 10foot pole away from New Malaysia.
Singapore people hard working. We must become like them
They work hard because they had no choice. Singapore is now 5 years in a row voted the most expensive cities to live. Even the elderly need to continue working just to survive instead enjoying their retirement. Singapore is not a place for human to live. We wouldn’t want to be like them.
Fully agreed bro! Lolz!
Malaysia the best place for human to live. Govt so good to Rakyat Malaysia. But oppos still komplen, bash day and night. Maybe they prefer go Singapore, to continue working just to survive and enjoying their retirement there.
Patut thailand belajar dengan tun pasal automotif. Orang thai tak tau apa2 pasal kereta, tun je tau
Dah, dia orang hantar young executives and engineers to meet TunM and study lesson learn on Malaysian Automotives.
I do think that the big players still aren’t able to mass produce EVs which are cheap. That’s why many countries either do not tax EVs or they give rebates.
Toyota, Honda & Nissan won’t be coming along? Abesla Thailand EV program!
As usual in bolehland, tax maximum bangkrup msian, then nothing solid come out except mai twisting story for own syok sendiri policy.
In Malaysia, EV Hybrid is selling more expensive than petrol diesel, yet EV Hybrid road tax seems will be much more expensive than petrol diesel. Where tax exemption ???
Thailand ahead of Malaysia. We are continuing blaming. Typical Malaysian culture.
EV bahaya la. Battery banyak mahal wor
MAI Madani still the best in this game. Salute!
Soon all EV cars will be made in Thailand or Indonesia or Singapore.
3 progressive countries.
Way to go Thailand. A government that is doing what it’s supposed to do…
Meanwhile Malaysia-China all the way!
This is the biggest prove that low-cost EV is not financially viable, even for big-name automakers. That means a full EV low-cost malaysian 3rd national car is not going to happen.
Meanwhile PHEV owners will soon pay more for charging. https://paultan.org/2019/03/11/local-ev-road-tax-to-finally-switch-to-kw-based-rate/
What viability is there for the B40 & M40 to use EV? This is the government Malaysians have voted for right?
At least Thailand is thinking big picture, not just in terms of going green but in terms of investment & local economy related to this type of vehicles manufacturing.
Meanwhile, back in Boleh-Land, the flying car is still being champion by a certain Mini-Star. Goes to show which country is serious about economy & business.
LOL no conventional car capable to reach my mountain top home, so I need the foot hill tribes make a flying car for my transportation.
It’s because our 60 years of corruption and dedak wasn’t as long or as high as Indonesia’s or Thailand’s. Their corruption and dedak for 70 years far surpassed our own which enabled them to catch up. To stay ahead, we need more corruptions and dedaks, which is why we brought back to power the AllFather of Corruptionism and Dedakism
Do you even READ the article?
You think 0 tax scheme is not dedak is it?
Even with this scheme, Automakers is saying NO to thai government.
Basher din read, he went straight for the bash. Which is why he got so easily sounded out by others.
Policies new to be revised.
Pollution is not only about one river.
Euro 2 is also hazardous!
Previous gomen kept mum, we’re watching the new one now..You’re move?
Their move? Dump more pollution in the rivers before voted out.
If you want to blame someone, go blame your Atuk. 22 of those years were his. Oh wait, didn’t you believed in him?