Thailand’s ambition in wanting to become the regional electric vehicle production hub has seen it put all the eggs into one basket over the past couple of years, pushing the fully-electric agenda seemingly at the expense of everything else, including hybrids.
The chosen path probably hasn’t panned out as smoothly as it has hoped, given the way how things have reportedly shaped up in recent times. With vehicle manufacturing stuttering and parts vendors being affected as a result of that, the government looks to be opening another basket for, well, new eggs, in the hope that it will bring things back to where it was.
This comes in the form of investment incentives for manufacturers of hybrid vehicles, as the Bangkok Post reports. Announced last Friday by the country’s board of investment (BOI), the move will see excise taxes for hybrids being lowered for five years, from 2028 to 2032.
Excise taxes will be lowered for hybrid vehicles makers that invest at least three billion baht (RM385.3 million)in the next four years and include the use of local parts, the BOI said. Vehicles will also need to have advanced driver assistance systems to qualify.
The board’s secretary-general Narit Therdsteerasukdi said hybrid vehicles were an important step in the transition to EVs. “Thailand has the capacity to be a key producer of hybrid vehicles, and supporting hybrid production will preserve auto parts manufacturing,” he said.
That statement indirectly acknowledges the difficulties being faced not just by traditional automakers that have set up assembly plants in the country but also by auto parts producers that supply them, largely as a result of subsidies for Chinese EV makers, which has seen a flood of products enter the market, resulting in a price war.
Introducing the new measures for hybrids, which is expected to draw in 50 billion baht (RM6.43 billion) worth of investments, will not just preserve businesses but also jobs. Thailand’s automotive sector employs more than 750,000 workers and accounts for about 11% of the country’s gross domestic product (GDP), making it the fourth-largest contributor to the economy.
According to Narit, seven automakers are currently receiving benefits from incentives offered by the BOI, four from Japan and three from China.
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Meanwhile PMX still crowing about “meeting” Elon Musk but actually via Zoom. That also not sure if it was really him or a body double.
Hopefully MY can adopt the same…
first it was EV and now its Hybrid, which begs the question, is EV still practical ?
RM2.05 is a big reason why EV adoption in Malaysia will lag other countries. As a Didi (Grab) driver told me in China, fuel savings over 5 years means he does not care if his EV become $0, he’d still be ahead. In fact the scales turn in his favour in 3 years.
EV tech also won’t stay at 2024 levels forever. There will come a tipping point in cost, charging speed, real world range, battery degradation/replacement when you purchasing decision will be not EV vs ICE but what EV.
Short answer – no
I previously owned a 2nd gen facelift Prius and for 10 years, I enjoyed trouble free motoring and savings in fuel costs. As my family grew, I changed to diesel powered vehicles – Ford Ranger, Ssangyong Kyron. I currently use the CX-5 AWD 2.2D. I get an average 650 km for a full tank.
I always believe Hybrid and PHEV would be the future hence I am holding out for a new hybrid SUV from either Toyota and/or one of the Chinese brands. I don’t understand why our MITI is focused on EV only.