Thailand is reviewing a range of measures to encourage electric vehicle (EV) adoption, including direct consumer subsidies and a proposed vehicle replacement programme, as authorities seek to expand the use of cleaner vehicles and support the country's energy-transition objectives.

According to Pornchai Thiraveja, Director General of the Excise Department, the department is in discussions with the Ministry of Finance regarding a project aimed at supporting Thailand's energy transition through increased EV adoption.

The initiative is expected to utilise funding from the government's borrowing programme established under legislation designed to address the energy crisis and promote the transition to cleaner energy sources. The project seeks to reduce the financial burden associated with purchasing electric vehicles and encourage greater adoption of clean-energy transportation.

Several forms of consumer support are under consideration. One proposal involves providing assistance through vehicle financing programmes. Under the concept being studied, if a consumer purchases an EV using a loan worth THB 850,000 (US$ 25,615), the government could contribute THB 50,000, reducing the amount that the buyer needs to finance to THB 800,000. Authorities are also considering support measures for consumers who purchase electric vehicles outright using cash.

Pornchai stated that qualification screening and financial capability assessments would form part of the programme. Utilising the financing system would also enable authorities to identify eligible recipients and administer support efficiently.

The proposed initiative differs from Thailand's EV 3.5 programme, which focuses on supporting businesses and manufacturers. Instead, the new scheme is intended to provide direct assistance to consumers purchasing electric vehicles, with the objective of increasing access to clean-energy vehicles and supporting the country's energy-transition objectives.

Vehicle replacement scheme remains under review

Alongside the proposed consumer subsidy measures, authorities continue to assess Thailand's proposed "old cars for new cars" trade-in programme, which is intended to encourage motorists to replace older vehicles with newer alternatives while supporting the country's EV transition.

According to Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, the Excise Department is continuing its study of the proposal. However, several unresolved issues have delayed implementation, and the scheme may not proceed in its original form.

One of the principal challenges involves determining fair valuations for used vehicles. Vehicles of the same age can vary significantly in condition depending on maintenance history and usage patterns, making it difficult to establish standard pricing criteria. Authorities are concerned that excessive reliance on official discretion could create disputes over valuations and raise questions regarding fairness.

Another significant issue is the absence of a comprehensive vehicle scrappage system. Policymakers are examining how dismantled vehicles, including reusable components, scrap metal and batteries, would be processed and recycled efficiently.

The Ministry of Finance is also evaluating age requirements for participation in the scheme, with discussions considering whether eligible vehicles should be at least five, 10 or 15 years old. Lavaron noted that the final programme could differ significantly from the original concept if authorities identify a more practical and effective approach.

Officials have also expressed concern that prolonged uncertainty regarding the scheme could discourage near-term vehicle purchases, as consumers may delay buying decisions while awaiting further details. The trade-in initiative is expected to be financed through the government's proposed THB 400 billion emergency borrowing programme, which is intended to stimulate economic activity and support Thailand's EV transition.

Broader support measures under development

Alongside the consumer-focused proposals, Thailand is preparing a broader package of measures designed to support EV investors and manufacturers as the sector faces intensifying competition, rapid technological change and tighter domestic credit conditions.

Speaking at the 11th International Electric Vehicle Technology Conference and Exhibition, Board of Investment (BOI) Secretary General Narit Therdsteerasukdi stated that the agency had completed consultations with individual automakers and industry organisations, including the Electric Vehicle Association of Thailand (EVAT), and had finalised proposals for new support measures.

According to Narit, the forthcoming measures are intended to support the continued development of the industry as the domestic market adapts to changing economic conditions and evolving technologies.

The measures are expected to prioritise mandatory domestic sourcing requirements, encourage foreign-local joint ventures, support automated factory upgrades and expand testing capabilities in areas such as advanced driver-assistance systems (ADAS) and autonomous mobility technologies.

EVAT President Suroj Sangsnit stated that Thailand's EV transition must extend beyond increasing sales of battery-powered vehicles.

"More importantly, it is about building a complete, competitive, and connected EV ecosystem that can support Thailand's long-term industrial growth," Suroj said. He identified battery cell systems, advanced software development, component recycling, charging infrastructure and workforce development as key areas requiring further localisation.

EV investment exceeds THB 137 billion

Thailand's EV sector has continued to attract investment. As of May 2026, investment promotion approvals in the industry had reached 198 projects worth more than THB 137 billion, according to Narit, who also serves as Secretary of the National Electric Vehicle Policy Committee, known as the EV Board.

The approved projects cover the entire EV ecosystem, including vehicle manufacturing, batteries, key components, charging infrastructure and battery-swapping facilities. The battery electric vehicle (BEV) segment accounts for THB 39.5 billion across 18 projects. Hybrid electric vehicle (HEV) projects represent THB 29.9 billion across seven projects, while plug-in hybrid electric vehicle (PHEV) projects account for THB 9.429 billion across seven projects. Other EV categories, including electric buses and electric motorcycles, account for THB 3.1 billion across 18 projects.

Investment in batteries and energy storage systems totals THB 33.5 billion across 57 projects, while key EV components such as traction motors, battery management systems and EV power control systems account for THB 12.5 billion across 49 projects.

Charging station and battery-swapping projects represent THB 9.788 billion across 42 projects and will support the installation of more than 22,900 charging outlets nationwide, including more than 10,000 fast chargers.

Earlier BOI data indicated that promoted EV-sector investments had already exceeded THB 130 billion across nearly 200 projects, supporting licensed manufacturing capacity of more than 370,000 battery electric vehicles annually.

Production activity expands

Most BEV manufacturers that received BOI promotion during the past three to four years have already commenced production in Thailand.

Mercedes-Benz was among the first manufacturers to begin local production, followed by Great Wall Motor, SAIC Motor-CP, BYD, Aion Automobile, Changan, EV Primus and, most recently, in 2026, BMW, Hyundai Mobility and Omoda & Jaecoo.

According to Narit, these investments have resulted in manufacturing activity and employment. The companies involved currently employ more than 16,000 Thai workers.

Strengthening local supply chains

To assist domestic component manufacturers in adapting to technological changes and participating in global EV supply chains, the BOI has introduced policies encouraging joint ventures between Thai companies and foreign investors.

The agency has also expanded programmes promoting the use of locally manufactured parts, including initiatives such as Subcon Thailand and Sourcing Day.

During the past two years, the BOI has organised 18 business-matching events linking Thai component suppliers with EV manufacturers. These activities have generated more than 1,200 business matches involving over 800 qualified Thai suppliers.

The agency estimates that these partnerships could generate more than THB 60 billion in local parts procurement, creating opportunities for Thai suppliers to participate in vehicle production associated with new investment projects.

EV adoption continues to increase

Thailand's automotive industry has evolved through several stages, progressing from one-tonne pickup trucks and internal combustion engine vehicles to eco-cars and, more recently, clean-energy and intelligent vehicles.

To support this transition, the BOI has adjusted its investment promotion policies to accommodate all vehicle technologies, enabling manufacturers across different segments to continue investing and expanding in Thailand.

The strategy aims to create an integrated automotive supply chain covering vehicle manufacturers, component suppliers, battery producers, intelligent systems developers, software companies, research and development centres and testing facilities.

According to the BOI, this approach has contributed to Thailand remaining the region's largest automotive production base and one of the larger automotive manufacturing centres globally. Consumer adoption of electrified vehicles has increased in recent years. In 2025, all types of electrified vehicles accounted for more than 44% of new vehicle registrations, compared with 3% five years earlier.

Hybrid electric vehicles held the largest share at 21.8%, followed by battery electric vehicles at 19.6% and plug-in hybrid electric vehicles at 2.9%. Earlier BOI data also showed that electrified vehicles accounted for more than 40% of new vehicle registrations during the previous year, with BEVs alone reaching nearly 20% market share, compared with less than 1% five years earlier. The figures also indicated that hybrid vehicles represented more than 21% of registrations, while plug-in hybrids accounted for approximately 3%.

The figures indicate that multiple electrified vehicle technologies are advancing simultaneously in Thailand, with hybrid vehicles expected to remain part of the country's transition towards broader electric mobility.