Thailand Requires Electric Car Manufacturers to Make Local, Thailand will require electric vehicle manufacturers in the country to produce electric car components locally. The rule, which will come into effect in 2026, is intended to create new industries in the field of electrified vehicles.
Quoted from the Bangkok Post , Wednesday (25/9), the Director General of the Thai Excise Department, Ekniti Nitithanprapas said, there are 3 main components of EV ( electric vehicles ) that can be made locally.
Thailand Requires Electric Car Manufacturers to Make Local
Namely an electric motor that converts electrical energy into kinetic energy to drive the vehicle, then a reducer with a similar function to a gearbox in a combustion engine vehicle, and an inverter that has the function of converting direct current (DC) from the battery into alternating current (AC) to supply electricity to the motor. The three main components of electric cars must be produced locally in Thailand starting in 2026.
Ekniti explained, after the government through the Excise Department introduced the first stage (3.0) and the second stage (3.5) of the steps to promote EV cars, manufacturers participating in the program have gradually built production bases in Thailand. The total investment value is even more than 80 billion baht or equivalent to IDR 36.9 trillion.
Companies participating in the program are required to produce electric vehicles locally to offset imports equivalent to 100 percent of sales in the first year. Well, if the company fails to meet the local production requirements in the second year, the company must produce 1.5 times the sales volume.
This requirement forces car manufacturers to establish production bases in Thailand, leading to new investments and industries in line with the department’s policy to promote economic growth. Previously, the Thai government had opened the door wide for electric car manufacturers to do business in their country, especially for electric car brands from China.
Continued with the electric vehicle subsidy program in Thailand which started in 2022 based on the ASEAN-China Free Trade Agreement. Where the Thai government offers subsidies of up to 150,000 baht (equivalent to Rp. 68 million) per electric vehicle unit.
The agreement also eliminates tariffs on imported Chinese electric vehicles sold in Thailand, but requires companies to produce electric vehicles in Thailand equal to the number of vehicles imported by 2022
