hybrid cars that can be shot in the arm
PUBLISHED: 5 Dec 2024 at 06: 35
In response to a plan to convert internal combustion engines to electric power, the national committee responsible for promoting the electric vehicle ( EV ) industry has approved a new car tax structure to support the production of hybrid vehicles.
Narit Therdsteerasukdi, secretary-general of the Board of Investment, said the National Electric Vehicle Policy Committee ( EV Board ) chaired by Prime Minister Paetongtarn Shinawatra yesterday approved an adjustment of the auto tax structure for hybrid electric vehicles ( HEV ) and mild hybrid electric vehicles ( MHEV ) with no more than 10 seats.
He said,” The walk is intended to position Thailand as a hub for East Asian production of electric motorcycles and EVs.”
HEV manufacturers that make an additional expense of at least three billion ringgit from 2024 to 2027 and employ local parts will pay lower excise taxes, Mr. Narit said. Cars will also need to have advanced driver-assistance methods to count, he said.
The manufacturers will also need to comply with strict carbon dioxide ( CO2 ) emission requirements, he said.
From 2026 to 2032, vehicles with a CO2 per kilometer emission rate of 6 % will be required. For those emitting CO2 between 101-120g/km, the price will remain 9 % from 2026 -2032, he said. Under the ancient duty structure, excise taxes may increase 2 % every year after 2026, Mr Narit added.
For MHEV, cars emitting less than 100g of CO2 per kilometre will have an excise tax rate of 10 % from 2026-2032. For those emitting CO2 between 101-120g/km, the price may be 12 % from 2026-2032, he said.
According to Mr. Narit, the MHEV manufacturers will need to invest an additional$ 1 billion in 2026 and at least$ 5 billion in 2028, as well as use local components like the HEV, according to Mr. Narit.
In accordance with the so-called EV3 measure, which aims to encourage the growth of the EV industry, the EV Board also agreed to extend the production period of battery electric vehicles ( BEV ). The measure includes incentives, lower transfer taxes for completely assembled vehicles, and a tax cut.
Importers of Noel who are granted the privileges are required to produce vehicles in accordance with the current law’s requirement of one imported car per one produced by 2024. If they fail to do so by the date, the percentages may be 1: 1.5 in 2025.
But, between 2022 and 2023, about 84, 000 Vehicles were imported under the EV3 measure, which means 124, 000 cars may be produced in 2025.
But due to the current declining auto sales, the EV Board decided to extend the production time to support the companies, Mr Narit said.
Companies are also allowed to produce cars at a fraction of 1: 2 in 2026 and 1: 3 in 2027 under the new deal known as the EV3.5, which covers 2024 to 2027, but has fewer bonuses than the preceding design, he said.
Some EV manufacturers have recently expressed fears that locally produced vehicles under EV3.0 may have more expensive vehicles than imported ones under EV3.5, which puts them at a disadvantage in terms of price.