Partner Bangkok
"100% ZEV use by 2035, signalling a long-term commitment to sustainable mobility."
Thailand’s EV Roadmap: Ambition Meets Action
- A Vision for Electrified Mobility
Thailand’s National Electric Vehicle Policy Committee has outlined a bold roadmap:
- 30% zero-emission vehicle (“ZEV”) production of total domestic vehicle output by 2030, positioning Thailand as a regional EV manufacturing powerhouse; and
- 100% ZEV use by 2035, signalling a long-term commitment to sustainable mobility.
These ambitious targets aim to solidify Thailand’s leadership in the global EV market, while fostering business and investment opportunities across the supply chain.
- Key Policies Powering the EV Ecosystem
Thailand’s EV transformation is underpinned by a suite of progressive policies designed to fuel both production and adoption:
- EV 3.5 Package (2024-2027):
- Import duty cuts: up to 40% for completely built unit EV passenger cars priced under THB2m imported during 2024-2025;
- Excise tax reductions: from 8% to 2% for electric passenger cars priced below THB7m; and
- Consumer subsidies: up to THB100,000 per EV buyer.
"Businesses navigating BOI and other incentives must ensure compliance with application criteria, such as investment thresholds and local content requirements."
These incentives not only make EV ownership more affordable but also create a strong foundation for market growth.
- BOI incentives: The Thai Board of Investment (“BOI”) offers comprehensive benefits to attract manufacturers and investors, including:
- corporate income tax exemptions: ranging from 3 to 13 years, depending on the products/services, capital investment and other criteria;
- import duty reductions/waivers: machinery and raw materials enjoy tax reductions or waivers; and
- non-tax benefits: land ownership for foreigners to operate the promoted business, visa, and work permit facilitations for foreign experts.
- Customs duty exemptions: The Customs Department has introduced a customs duty exemption for battery electric passenger vehicles (up to 10 seats) and battery electric pickup trucks (BEVs) assembled or produced in free zones under customs law or free trade zones under the Industrial Estate Authority of Thailand (IEAT). This exemption applies to goods exported from these zones between 8 October 2022 and 31 December 2028, for domestic use or sale in Thailand.
- Corporate income tax reduction measures: The National Electric Vehicle Policy Committee has approved measures to support business operators transitioning to EVs. These include deductions on corporate tax calculations by allowing companies or partnerships to deduct expenses for the purchase of electric passenger vehicles or electric trucks (without a price ceiling):
- Domestically manufactured EVs: deduction of x2 the vehicle’s actual price; and
- Imported fully-assembled EVs: deduction of x1.5 the actual price.
Key contacts
"Thailand’s renewable energy sector plays a key role in driving the EV revolution, aligning clean energy initiatives with sustainable mobility. "
These measures are anticipated to be effective until the end of 2025, however the official regulation is yet to be announced.
- EV use support: The Secretariat of the Cabinet has tasked the Ministry of Transport with coordinating with other ministries to study and develop policies and measures to support the transition from internal combustion engine vehicles to EVs. Key focus areas include:
- supporting the second-hand EV market;
- streamlining EV maintenance and recycling processes; and
- establishing fair insurance premium guidelines to encourage wider EV adoption.
Legal Insight: businesses navigating BOI and other incentives must ensure compliance with application criteria, such as investment thresholds and local content requirements. Early legal advice can streamline the process and maximise benefits.
Supercharging the EV Infrastructure
A robust charging network is crucial for the growth of Thailand’s EV market, and significant progress is underway to meet rising demand:
- Driving EV Charging Expansion:
Leading energy players such as PTT and EGAT are spearheading infrastructure development:
- PTT’s ‘Arun Plus’ plans to establish over 7,000 EV charging points by 2030; and
- EGAT’s ‘Elex by EGAT’ project is rolling out fast-charging stations along major highways facilitating long-distance EV travel.
"These challenges also present opportunities for innovation, collaboration, especially for businesses offering solutions in infrastructure development, energy management and EV maintenance."
- Scaling Public Charging Networks:
The Ministry of Energy and Ministry of Transport are working together to expand charging station networks nationwide, ensuring widespread accessibility and supporting the continued growth of EV adoption in Thailand.
EVs and Renewables: A Perfect Synergy
Thailand’s renewable energy sector plays a key role in driving the EV revolution, aligning clean energy initiatives with sustainable mobility.
- Smart Charging meets Smart Grids: Thailand is piloting smart grid technology to optimise EV charging, reduce grid congestion and facilitate vehicle-to-grid (“V2G”) energy exchanges where EVs can return energy to the grid during high demand. For example, EGAT and Nissan are testing the simultaneous discharge of energy from multiple EV batteries to stabilise the grid.
- Decentralised Energy Systems: EGAT has launched an integrated energy solution featuring solar rooftops, smart home systems and EV chargers, creating a seamless ecosystem that reduces carbon emissions and boosts energy efficiency.
Legal Insight: infrastructure expansion requires navigating complex regulatory approvals and land use laws. Companies can benefit from legal guidance to avoid delays and ensure compliance with environmental and energy regulations.
Navigating Challenges on the Road Ahead
Unfortunately, no revolution is without hurdles. For Thailand’s EV journey, these include:
- rural accessibility: charging infrastructure in remote areas remains underdeveloped limiting EV adoption beyond urban centres; and
- grid modernisation: scaling renewable energy and smart grid technology requires significant investment.
"Companies entering the market must address key legal considerations, including intellectual property protections, supply chain contracts and tax implications."
These challenges also present opportunities for innovation, collaboration, especially for businesses offering solutions in infrastructure development, energy management and EV maintenance.
Why Thailand’s EV Revolution Matters
Thailand’s EV transformation is more than an environmental initiative, it’s a strategic economic pivot with far-reaching benefits:
- economic growth: generating jobs, driving technological innovation and boosting diversification;
- environmental impact: reducing greenhouse gas emissions and urban air pollution; and
- investor confidence: strong policies and a growing market position Thailand as a regional EV leader.
Legal Insight: as the EV sector grows, companies entering the market must address key legal considerations, including intellectual property protections, supply chain contracts and tax implications.
Driving into the Future
Thailand’s EV revolution represents a turning point for mobility in Southeast Asia. By integrating ambitious policies, cutting-edge infrastructure and renewable energy solutions, the country is setting a regional benchmark. For businesses and investors, Thailand’s electrified future is a ride worth taking but navigating the regulatory and legal landscape is essential.
How We Can Help
At Watson Farley & Williams, we specialise in guiding businesses through Thailand’s evolving EV sector. Whether you’re structuring investments, negotiating supply chain agreements, or ensuring regulatory compliance, our team is here to help you plug into the future. Contact us today to learn more.
Key contacts
Partner Bangkok
Senior Associate Bangkok
Associate Bangkok
