Thailand’s government has positioned the EV (electric vehicle) industry at the center of its national strategy, aiming to reconcile decarbonization with industrial competitiveness. The EV subsidy system is designed to cover not only complete vehicles, but also batteries, infrastructure, and recycling, forming an entire ecosystem; when used together with the BOI system, benefits such as corporate tax and customs duty incentives are also available.
By combining export advantages under RCEP and FTAs, support extends powerfully not only to the domestic Thai market but also to global market expansion.
In this article, we systematically organize the policy background of Thailand’s EV subsidies, eligible support targets, connections with related systems, the application procedure, points of caution, etc., and explain specific perspectives and steps for Japanese companies (especially in manufacturing) to actually make use of them.
Background and the Overall Picture of Thailand’s EV Subsidies
Thailand’s government is incorporating the EV (electric vehicle) industry into its core national strategy to achieve both a decarbonized society and strengthened industrial competitiveness. The EV subsidy scheme in Thailand is a mechanism to support building an industrial ecosystem that looks ahead from battery manufacturing through to recycling. In this section, we organize that background and overall picture from three viewpoints.
The background of integrating EV industry into national strategy
Thailand considers its automobile industry—which accounts for about 10% of domestic GDP—as a growth driver in both environmental and economic dimensions. By introducing new preferential measures evaluated on greenhouse gas reductions via introducing EV‐related technologies, it has expanded tax exemptions for corporate income tax and import duties for capital investment in production lines. This makes it easier for companies to use Thailand’s EV subsidies to introduce state‐of‐the‐art battery production technologies and production equipment.
Shift from complete vehicles to building the full ecosystem
Whereas conventional subsidies were limited to complete vehicle manufacturers, now the support system has evolved to wide‐area support including parts suppliers, charging infrastructure, and battery recycling. Specifically, when installing production lines for lithium‐ion batteries, import duties and corporate taxes are exempted; subsidies are also applied to recycling and reuse equipment for used batteries. This support covering the entire supply chain is a major characteristic of Thailand’s EV subsidy scheme.
Relation with industrial competitiveness and export policies
Thailand makes use of many FTAs including RCEP, and preferential treatments are also applied when exporting EV parts or complete vehicles. The BOI system’s import duty exemptions on raw materials for export directly enhance price competitiveness in global markets. In addition, the government supports upgrading domestic production bases in parallel with export promotion, aiming for long‐term strengthening of industrial competitiveness. All of these policies are closely linked with a series of support measures including Thailand’s EV subsidies.
Types of Systems That Can Be Used Under Thailand’s EV Subsidies
Towards growth of the EV industry, Thailand offers multiple support measures including the BOI system. Below are representative systems that can be used in conjunction with the EV subsidy.
EV‐related projects covered under the BOI system
Among the incentive industries defined by BOI (Thailand’s Board of Investment) is the “Electrical & Electronics” field, which includes EV manufacture and assembly. New EV battery factories or EV motor assembly lines are eligible for corporate income tax exemption and import duty exemptions for machinery. Import duty reductions/exemptions are also granted for raw materials used for export‐oriented parts, allowing utilization of Thailand’s EV subsidies with a view to global market expansion.
Privileges obtainable from subsidy / BOI
By obtaining BOI certification, the following privileges can be received:
- Exemption or reduction of corporate income tax: up to 50–100% of the investment amount, with a maximum tax‐exempt period of 10 years.
- Exemption from import duties on machinery/equipment: applicable to robots, automation devices, battery manufacturing equipment necessary for EV production.
- Relaxation of land ownership rights: in some cases, full foreign ownership (100%) of land becomes possible under BOI encouraged acquisition.
These privileges can be combined to maximize synergy between Thailand’s EV subsidies and the BOI system.
Use with other government support programs
To further expand support, EV production line renewal or DX (digital transformation) promotion can be supplemented by combining national subsidy programs. Representative examples:
