Thai Transport Ministry Proposes Tax Incentives and Trade-In Scheme to Increase EV Adoption by 300,000 Vehicles
Introduction
The Ministry of Transport is developing an action plan to increase the number of electric vehicles (EVs) on Thai roads by 300,000 units. The plan includes tax incentives and an expanded car trade-in program, as announced by Deputy Transport Minister Siripong Angkasakulkiat after consultations with the Department of Land Transport (DLT).
Main Body
Firstly, the plan extends the existing car trade-in policy to include public transport vehicles, especially taxis. This measure aims to encourage operators to switch to electric models, which would reduce fuel costs and urban air pollution. Secondly, the plan proposes a reduction of up to 80% in annual vehicle tax for EVs and hybrid vehicles, or a full waiver during the transition period. The goal is to ease the financial burden on drivers and promote the use of cleaner technology. The financial effects of these proposals are currently being reviewed together with the Ministry of Finance before they are submitted to the cabinet. If approved, the measures will be implemented through a royal decree and could take effect in June. In a related development, the government’s diesel fuel aid scheme ended yesterday. It registered 55,217 transport operators and 206,529 vehicles. The program covered public buses, vans, taxis, motorcycle taxis, and freight vehicles. Under this scheme, petrol-powered taxis received a flat payment of 5,040 baht per vehicle, provided they completed at least 2,500 kilometers of service during the 42-day support period. Compliance was tracked through a DLT application. Petrol-powered taxis and older private vehicles have been identified as the main targets for conversion, with the government aiming to add 300,000 EVs to the fleet. Authorities are also considering extra incentives specifically for taxis to help them make the switch. Furthermore, it was confirmed that public transport driving licenses remain restricted to Thai nationals.
Conclusion
The proposed measures, which are still being evaluated for their financial impact, represent a joint effort to speed up EV adoption and cut emissions. If they are enacted as planned in June, they would offer significant financial benefits for both private and public transport operators to move away from petrol-powered vehicles.