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Thailand eases regulations on electric vehicle production
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Thailand eases regulations on electric vehicle production

By VNA December 8, 2024 | 7:24 a.m. (Pacific Time)

Thailand eases regulations on electric vehicle production

General view of the 45th International Motor Show in Bangkok, Thailand, March 25, 2024. Photo by Reuters

The Board of Investment of Thailand (BoI) has announced that the government will extend deadlines for electric vehicle (EV) manufacturers to meet their domestic production quotas, to meet weak local market demand.

Under the current EV 3.0 incentive program, manufacturers must produce one locally assembled EV for every imported EV or a ratio of 1:1.

Companies that fail to meet this quota in 2024 will face a stricter production-to-import ratio of 1.5:1 by 2025.

The policy aims to encourage automakers to establish electric vehicle assembly plants in Thailand, which has attracted electric vehicle-related investments totaling THB80 billion ($2.3 billion).

To further support the struggling auto industry, the government will extend national electric vehicle production requirements until the end of 2027. The move comes as Thailand struggles with stagnant market conditions caused by economic growth slow and strict credit policies.

The Federation of Thai Industries (FTI) recently revised its 2024 auto production forecast downward to 1.5 million units, the lowest since 2021, citing weak domestic demand.

In January and October, total car sales in Thailand fell 26.2% year-on-year to 476,350 units, while pickup truck sales fell 43%.

The drop is attributed to tighter regulation of auto loans amid concerns over rising non-performing loans and high household debt in Thailand.