Thailand updates BEV incentive regulations

Core Insights - The Thai government has revised its battery electric vehicle (BEV) incentive program to boost exports and address concerns of a domestic supply glut due to increased production capacity, primarily from Chinese brands [1][3] Summary by Sections Incentive Program Changes - The Board of Investment (BOI) has modified the EV3.0 and EV3.5 incentive programs, allowing each BEV produced for export to count as 1.5 units towards local production obligations, up from 1 unit previously [2] - These changes aim to compensate for reductions in excise duties and other incentives that facilitated new entrants in the local market [2] Investment and Market Impact - Thailand has attracted approximately US$ 4 billion in investments related to BEVs and components since the introduction of the EV3.0 and EV3.5 programs, mainly from Chinese automakers like BYD and GWM [3] - BEV sales reached nearly 90,000 units in the first ten months of 2025, representing over 18% of total vehicle sales, driven by increased production and competitive pricing from Chinese manufacturers [3] Additional Regulatory Adjustments - The registration deadline for BEVs under the EV3.0 program has been extended to January 2027, while the EV3.5 program's deadline has also been moved to January 2027 [5] - The government will delay subsidy payments to manufacturers not meeting targets and has extended the deadline for imported battery cells to count as local production until June 30, 2026, up to 10% of the BEV price [5] - Manufacturers can exit the import compensation program by returning excise tax discounts, with additional penalties imposed [5] - Support measures for hybrid electric vehicle (HEV) production will be fast-tracked [5]