BANGKOK (Reuters) -Thailand plans to offer tax incentives for plug-in hybrid vehicle manufacturing, with the changes to take effect from 2026 if they are approved, Deputy Finance Minister Paopoom Rojanasakul said on Monday.
Under the plans, tax collection would be based on the travel range per battery charge for a vehicle, with lower taxes for a longer travel range, Paopoom said, adding the proposal would be sent to cabinet by April.
Thailand is Southeast Asia’s biggest autos production centre and an export base for some of the world’s top automakers, including Toyota and Honda, but the industry is in a major slump.
Auto production in Thailand fell by a tenth last year to a four-year low, with domestic sales and exports falling 26% and 8.8% respectively.
Chinese EV makers such as BYD and Great Wall Motors, have poured more than $3 billion into facilities in Thailand, and their deep discounts are also pressuring competitors in a sector that accounts for 10% of GDP.
Japanese brands, including Toyota, have been in discussions with the government for a trade-in programme to trigger sales, Reuters reported last month.
The Finance Ministry also plans to introduce credit guarantees for pick-up truck buyers, Paopoom said, with those measures expected to be rolled out before the annual motor show at the end of March.
(Reporting by Kitiphong Thaichareon and Chayut Setboonsarng; Editing by John Mair)
