Despite a government rollback in subsidies for buying an electric vehicle (EV), the number of EVs registered in the Kingdom quadrupled in fiscal year 2023 to over 70,000. While the number remains modest, the surge is a clear signal that Thais are taking to EVs.

The Department of Land Transport reported last week that it had registered 73,341 new electric vehicles in fiscal year 2023 (October 2022-September 2023), compared with 14,696 in fiscal year 2022, according to Deputy Director-General Seksom Akaraphan. That represents an increase of 58,645 vehicles, or 399 percent. He added that a government cut in its road tax helped drive sales higher.

He also said that the annual registration tax was reduced by 80 percent for new EVs, which would continue until 2025. However, the government recently announced it would reduce subsidies for EV purchases, although not eliminate them.

Government officials felt they could reduce the subsidies without hurting sales because the Thai public is becoming more willing to buy and drive EVs. Environmental awareness and saving on fuel are helping consumers to become more enamoured of the new technology.

Long known as “the Detroit of Southeast Asia” because of its expansive automobile manufacturing sector, Thailand has been evolving into the EV-manufacturing hub of the region. Domestic sales are just a small part of the number of EVs assembled in the Kingdom, as most EVs are manufactured for export.

EVs and other advanced automobile technologies are a priority sector under the government’s 20-year national strategy to usher in a new, higher and greener level of development.

The industry also supports Thailand’s commitments under the Paris Climate Accords to reduce carbon and greenhouse gas emissions, with the goal of achieving carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065.

Source: Royal Thai Embassy, Washington D.C.