The state tax exemption for companies purchasing commercial electric vehicles (EVs) is expected to support EV adoption; however, industry representatives believe that further measures are required to accelerate the shift to lower-emission vehicles.

Approved by the cabinet in late March, 2025, the corporate income tax exemption applies to businesses investing in electric trucks and buses, whether imported or assembled locally. This measure will remain in effect until 31st December 2025.

"This policy targets large vehicles used for commercial purposes," said Peerapatr Sirichantaropart, Chief Executive of Sharge Management, a company that provides charging system for electric vehicles.

Previously, the Government introduced EV incentives, such as tax reductions and subsidies for imported passenger EVs, alongside requirements for manufacturers to establish assembly facilities within the country.

The latest tax exemption is expected to stimulate sales of commercial EVs and support the domestic assembly of battery-powered heavy-duty trucks, according to Peerapatr. He also noted that the policy may attract Chinese EV manufacturers to expand operations in Thailand.

Under the Government's "30@30" target, Thailand aims for EVs to account for at least 30% of total vehicle production by 2030. This includes 725,000 zero-emission cars, 675,000 electric motorcycles, and 34,000 electric buses and trucks.

"The new policy may encourage companies to shift from diesel and compressed natural gas-powered trucks to electric trucks," Peerapatr further added.

Elenergy, a local distributor of battery-powered tractors produced by China's Geely Automobile, welcomed the tax exemption but called for additional government measures.

Authorities should review operating hour restrictions for electric trucks, said Anyarin Rojpatranun, Co-founder and Chief Executive of Elenergy.

Currently, large trucks are permitted to operate only at specific times to avoid contributing to traffic congestion. However, this regulation may discourage companies from adopting electric trucks, she explained.

Since electric trucks require several hours to fully recharge, the existing time constraints further limit their availability for transporting goods, Anyarin added.

She also suggested that commercial EV operators should be allowed to participate in carbon credit trading, as the use of electric vehicles contributes to lower carbon dioxide emissions.

Such a mechanism could serve as an additional incentive by offering companies the opportunity to generate revenue, she said.

Given that charging larger vehicles requires more time, Anyarin stressed the need for an adequate number of charging stations to meet demand.

"To meet national EV targets, policymakers must consider the development of a complete EV ecosystem. Tax exemptions alone are not sufficient," she concluded.