The Thai government has approved incentives for companies to switch their commercial fleets of large trucks and buses to battery electric vehicles, Reuters reported.
Cash grants for EV battery cell manufacturers will also be offered, the government told the news agency, adding the policies would reinforce Thailand’s status as an EV manufacturing hub.
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“This will significantly increase the adoption of electric trucks and buses, reduce pollution from the transportation and manufacturing sectors, and support companies’ moves to reach their net zero targets,” the government said.
The support for companies would come in the form of special tax deduction granted to eligible companies, effective until December 2025, the report said.
Companies buying vehicles made locally would be able to deduct expenses of twice the actual price of the vehicles, without a price ceiling being set. For purchases of imported vehicles, the deduction would be equal 1.5 times the actual price of the vehicles.
Reuters noted tax cuts and subsidies offered in Thailand had already drawn several Chinese automakers, including BYD and Great Wall Motor, which have committed to invest US$1.44bn in new factories.
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