By Abbas Nazil
Thailand is reviewing a $714 million electric vehicle (EV) support programme aimed at replacing up to 80,000 ageing vehicles with cleaner electric alternatives as part of efforts to accelerate the country’s energy transition and revive its struggling automotive industry.
The proposed 24 billion baht initiative would initially focus on replacing commercial transport vehicles, including taxis, motorcycle taxis, tuk-tuks, buses and trucks, with electric models, but authorities are now considering expanding the programme to cover wider categories of electric vehicle purchases.
Deputy Transport Minister Siripong Angkasakulkiat said the government is evaluating whether the support should extend beyond commercial transport operators to include private vehicle owners as Thailand seeks to increase EV adoption nationwide.
“We are reconsidering whether the assistance should be extended to all vehicle categories, not just those for transportation,” Siripong told Reuters.
The plan is being reviewed by a government committee chaired by the Finance Ministry and could provide support through different mechanisms, including direct subsidies, low-interest financing and tax incentives for vehicles that meet replacement requirements.
The proposed scheme follows a recent decision by Thailand’s Constitutional Court that cleared the government’s 400 billion baht emergency borrowing plan, allowing authorities to proceed with additional spending initiatives, including measures linked to economic recovery and energy transformation.
Thailand, Southeast Asia’s largest automobile manufacturing hub, has been promoting electric vehicle production and adoption through various incentives and tax benefits in recent years.
The country has attracted more than $4 billion in EV-related investments, including major investments from Chinese automakers such as BYD and Great Wall Motor, as it attempts to maintain its position as a regional automotive production centre.
However, the domestic vehicle market has faced challenges, with sales declining significantly due to high household debt and stricter lending conditions.
Industry data showed that domestic vehicle sales dropped to a 15-year low in 2024, particularly affecting pickup trucks, which remain a major part of Thailand’s automotive sector.
According to the Federation of Thai Industries, Thailand recorded 621,166 vehicle sales in 2025, including 120,301 passenger electric vehicles, while motorcycle sales reached about 1.7 million units.
Automotive industry groups have urged the government to ensure that any new EV incentives prioritise locally manufactured vehicles with a high percentage of locally sourced components.
Surapong Paisitpattanapong, spokesperson of the Federation of Thai Industries’ Automotive Industry Club, said encouraging domestic EV production would create jobs, increase income opportunities and generate more government revenue.
He stressed that locally produced electric vehicles would provide wider economic benefits compared with relying heavily on imported models.
The Electric Vehicle Association of Thailand also called for greater support for electric motorcycles and public buses, arguing that these vehicle categories contribute significantly to urban emissions.
Vice President of the association, Siamnat Panassorn, said replacing high-emission vehicles such as motorcycles and buses with electric alternatives would help improve air quality and promote cleaner transportation.
Under the proposed programme, the government is also considering financing assistance for taxi drivers whose vehicles reach the 10-year replacement age limit next year.
The support could reduce daily loan repayment costs for electric taxis from about 700 baht to 500 baht over a five-year period.
Other electric transport categories, including minibuses, vans, buses, tuk-tuks and heavy-duty vehicles, may receive different levels of assistance depending on their needs.
Thailand’s government said the broader goal is to encourage EV adoption across all vehicle categories while providing citizens with cleaner and safer transportation technology.
Authorities are expected to finalise details of the programme within the coming months, with officials confirming that some form of support measure will likely be introduced before the end of the year.
The initiative is also expected to support Thailand’s wider climate and energy goals by reducing emissions from the transport sector while protecting the country’s important automotive manufacturing industry, which supports millions of jobs through vehicle production and supply chains.