Mon Sep 23 22:30:00 UTC 2024: ## Thailand Sets 2026 Deadline for Local EV Component Production
**Bangkok, Thailand** – The Excise Department has announced that car manufacturers participating in the government’s electric vehicle (EV) promotion program must begin producing key EV components domestically by 2026. This includes the electric motor, reducer, and inverter, which are crucial for an EV’s operation.
The announcement follows the government’s introduction of two phases of EV promotion measures (3.0 and 3.5), which have already seen significant investment in Thailand’s automotive industry. To date, participating companies have invested over 80 billion baht in establishing production bases and manufacturing EVs locally.
These investments are driven by the government’s requirement for companies to locally manufacture EVs to compensate for imports. The first year demands 100% local production matching sales, rising to 1.5 times sales in the second year if the requirement is not met.
“This policy encourages new investments and industries in line with our goal of promoting economic growth alongside environmental protection,” said Ekniti Nitithanprapas, Director-General of the Excise Department.
Mr. Ekniti also noted that the department’s vehicle tax revenue has decreased significantly due to reduced production and sales, as well as tax reduction measures for EVs. However, the government remains committed to supporting the EV industry, with the Board of Investment offering incentives for EV battery manufacturing investments.
While module-level and pack-level investments receive tax exemptions, cell-level investments are eligible for both tax exemptions and subsidies from the EV promotion fund.
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