New policy in Thailand's car market! Lowered consumption tax, hybrid cars are more valuable now!
AshleyJul 29, 2024, 11:16 AM
The Thai government, in a bid to boost the development of electric vehicle sector, approved a new incentive policy on July 26: temporarily lowering the consumption tax rate for hybrid electric vehicles (HEV). This move is aimed at attracting more automakers to invest in HEV production in Thailand and promoting the transformation of the entire auto industry to electrification.
According to a decision made by Thailand's National Electric Vehicle Policy Board (EV Board), automakers wishing to enjoy the reduced consumption tax rate must make new investments of no less than 30 billion baht in Thailand between 2024 and 2027 and meet a series of strict criteria. These criteria include:
1. Technological upgrade: The manufacturers must make new investments in HEV technology in accordance with the latest technical standards and stringent carbon dioxide emission requirements.
2. Localization of production: The vehicles must use key components that are produced in Thailand.
3. Intelligent upgrade: The vehicles must be equipped with at least four advanced driving assistance systems (ADAS), such as automatic emergency braking systems, lane-keeping assistance systems, etc.
4. Emission standards: The carbon dioxide emissions of the vehicle must be below the prescribed standards in order to meet the environmental protection targets set by the Thai government.
Specifically, the reduced consumption tax rate will be effective between 2028 and 2032, and it applies to hybrid vehicles with no more than 10 seats. HEVs that meet the above conditions will have their consumption tax rate divided into two tiers based on their carbon dioxide emissions: vehicles emitting less than 100 grams per kilometer will enjoy a tax rate of 6%, while those emitting between 101-120 grams per kilometer will enjoy a tax rate of 9%.
Narit Therdsteerasukdi, secretary-general of the Thailand Board of Investment, said that the new policy is expected to attract 50 billion baht in new investment and promote Thailand as the global center for electric vehicle production.
If any infringement occurs, please contact us for deletion
Trending News
2026 Malaysia EV Road Tax Policy Analysis: Costs and Opportunities After the End of Exemptions
As December 31, 2025, approaches, electric vehicle owners in Malaysia will face a significant policy turning point — the four-year electric vehicle road tax exemption policy is coming to an end. Starting from January 1, 2026, all electric vehicles will be subject to an annual road tax based on a new power-based tiered tax system. This change marks a transition for Malaysia's electric vehicle market from a policy-driven phase to a new stage of market-oriented development, bringing new considerations for both consumers and the industry.
The fifth-generation Geely Emgrand car photos released, with upgrades in body size and power system
As a family sedan with cumulative sales exceeding 4 million units in China, the new generation Emgrand will further consolidate Emgrand's competitive position in the sedan market through stronger product capabilities.
Proton's fourth-generation Saga revolution, brand new 1.5L four-cylinder engine, equipped with ADAS for the first time
By leveraging Geely's technological resources, the fourth-generation Proton Saga has been comprehensively upgraded in terms of design, performance, and safety, while maintaining localized characteristics.
BYD Sealion 7 is not only cheaper than Tesla Model Y, what other differences do they have?
Is it better to buy the BYD Sealion 7 or the Tesla Model Y? This really makes one a bit hesitant, but before you make a decision, I recommend you take a good look at this article.
The all-new Proton X50 has sold over 6,000 units in a month and a half since its launch, becoming the champion in its segment.
Market data shows that the Proton X50 achieved a delivery volume of 999 units within the first five working days after its launch, and by the end of July, its production scale reached 2,000 units.
Popular Cars
Car Compare
Model Year
car model