Thailand Plans New EV Incentive Scheme to Boost Electric Vehicle Adoption

The Thailand government is considering a 24-billion-baht incentive programme aimed at replacing 80,000 ageing transport vehicles with electric vehicles (EVs). Authorities are also evaluating whether the scheme should be expanded to cover all categories of EV purchases.

The initiative is part of Thailand's broader energy transition strategy and is expected to support the country's automotive industry. Although Thailand remains Southeast Asia's largest automobile manufacturing hub, domestic vehicle sales fell to a 15-year low in 2024, largely due to high household debt and tighter lending conditions.

The initial proposal focused on replacing commercial transport vehicles, including taxis, motorcycle taxis, tuk-tuks, buses and trucks, with electric alternatives. However, Deputy Transport Minister Siripong Angkasakulkiat said the government is now considering extending the incentives to all vehicle categories.

Under the proposed programme, EV buyers could receive subsidies, low-interest loans and tax incentives. The proposal is currently being reviewed by a committee chaired by Thailand's Finance Ministry, which oversees projects related to economic relief measures and the country's energy transition.

According to the Federation of Thai Industries, more than 621,000 cars were sold in Thailand in 2025, including over 120,000 electric passenger vehicles. Around 1.7 million motorcycles were also sold during the year.

Industry representatives have urged the government to ensure that any new incentives primarily support locally manufactured electric vehicles with a high percentage of domestically sourced components. They believe this would strengthen local manufacturing, create jobs and increase government tax revenues.

The government is also considering a dedicated financing package for taxi operators. Under the proposal, drivers replacing 10-year-old taxis with electric vehicles could see their daily loan repayments reduced from around 700 baht to 500 baht. Separate support measures are also being evaluated for pickup trucks, minibuses, vans, buses, tuk-tuks and heavy commercial vehicles.

The Thai government expects to finalise the programme later this year, although discussions on its details are still ongoing.