New EV Incentives For Automakers In Thailand

The Thai government is giving further subsidies to Chinese automakers which could save customers up to $4,779 (RM20k) per unit.

It appears that a couple of Chinese automakers are about to have an increase in EV sales in Thailand thanks to further government incentives from the Thai government. 

According to Reuters, Chinese automaker Great Wall Motor and SAIC-CP Motor, the Thai unit of SAIC Motor Corp, have signed an agreement with Thailand's government which should see a slash of retail prices of its electric vehicles.

"The agreement, which involves a government subsidy and reduction in value-added tax, could save customers up to 160,000 baht ($4,779) per unit," Michael Chong, General Manager of Great Wall Motor Thailand told Reuters.

This move should represent a savings of around 13-15%, which could prove very beneficial for new EV customers in Thailand.

Like most countries trying to encourage their population to buy EV cars, Thailand is giving these tax breaks to automakers in the hope that more people are able to access electric vehicles.

In 2021, 759,119 cars were sold in Thailand and less than 4,000 of them were fully-electric vehicles, meaning which there is huge opportunity for bigger EV penetration in Thailand and government incentives such as these will only help quicken adoption. 

The knock-on effect here is then clear, if more people buy EVs, then companies like Great Wall Motor and SAIC-CP Motor might just invest more into producing EVs in Thailand. Is that also positive news for Malaysia?  

This is also another initiative by Thailand to preserve its status as a major regional automaker, as it accounts for 10% of Thai gross domestic product and manufacturing jobs.

Great Wall Motor in 2020 took over the General Motors plant in Thailand, Asia's fourth-largest auto assembly and export hub. This year the firm plans to sell 20,000 units in Thailand between its two brands, the BEV Ora Good Cat and Haval SUVs according to Reuters.