Key policy updates simplify rules, extend deadlines, and offer new export incentives, reinforcing Thailand’s appeal as a global EV investment and manufacturing hub.
In its first meeting under the new government, Thailand’s National Electric Vehicle Policy Board (EV Board) has tackled key issues and opportunities in the country’s growing electric vehicle (EV) sector. Chaired by Deputy Prime Minister and Minister of Finance, Mr. Ekniti Nitithanprapas, the Board approved strategic changes to existing incentives to make them more effective, and introduced new solutions to manage potential market oversupply. These moves further solidify Thailand’s commitment to becoming a leading EV hub.
"This is a dynamic time for Thailand's automotive landscape, and our new government is moving decisively to ensure our EV ecosystem is robust and future-proof," stated Mr. Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI) and Secretary of the EV Board. "We are strategically enhancing our incentive framework to provide greater flexibility and support for manufacturers. This includes measures to boost exports and foster integrated local supply chains. Our goal is clear: to attract substantial new investment and firmly establish Thailand as the preeminent hub for electrified mobility, driving us towards our ambitious '30@30' target."
Key resolutions from the meeting address two main areas:
I. Boosting EV Promotion Efficiency
1. Extended Registration for Locally-Made EVs (EV3 & EV3.5): To better match market conditions, the registration deadline for domestically produced EV3 vehicles is extended from December 2025 to January 2026. For EV3.5 vehicles, the deadline moves from December 2027 to January 2028.
2. Defined Subsidy Payment Rules: Subsidy payments will now be directly linked to meeting required local production targets. Payments will be held back if a manufacturer's total local production falls below a certain level of their commitment.
3. More Flexible Local Production Extensions: The rules for extending local production obligations have been made more flexible. This includes allowing EV3 companies to use additional factories to meet their targets and encouraging partnerships with other companies under the EV3.5 scheme.
Source: Thailand Board of Investment
4. Battery Cell Import Rule Extended with Local Focus: To support the ongoing transition to local battery manufacturing, the rule allowing imported battery cells to be counted towards local content requirements is extended by six months to June 30, 2026. However, from January 1, 2026, the maximum value from imported cells that can be counted will be cut to 10% of the EV's factory price. Participating applicants will have to provide a clear domestic sourcing plan.
5. Support for Hybrid Electric Vehicles (HEVs): The Board has fast-tracked support measures for HEV production. The Ministry of Industry will now finalize operational guidelines and review processes for HEV manufacturers, covering aspects like CO2 emissions, local parts use, and advanced driver-assistance systems (ADAS) safety standards.
II. Managing Potential Oversupply
1. Export Incentive for Local Production: Reaffirming a July 30, 2025, decision, every EV produced for export will now count as 1.5 units towards a manufacturer's local production obligations under the EV3 and EV3.5 schemes. To support this, manufacturers will get an extended deadline until June 30 of the following year to export their vehicles and submit export proof, and the coverage period for Bank Guarantees will be extended by six months.
2. "Reverse Exit" for Registered Vehicles: The Board has approved a "Reverse Exit" option for EV3 and EV3.5 vehicles that were imported and registered but haven't received subsidies. This allows affected manufacturers to repay the excise tax difference, along with penalties, removing these vehicles from their local production commitments.
Despite a recent slowdown in the wider automotive market, segments like Plug-in Hybrid Electric Vehicles (PHEVs), Hybrid Electric Vehicles (HEVs), and Battery Electric Vehicles (BEVs) continue to grow strongly in Thailand. This trend aligns with the government's policy to transition from traditional internal combustion engine vehicles to all types of electric mobility.
Thailand's EV sector shows significant progress. As of September 2025, over 238,000 EV vehicles have been registered under the EV3 and EV3.5 schemes. Cumulative approved investments in the EV supply chain reached 140 billion baht by October 31, 2025. Furthermore, Thailand's EV charging infrastructure is growing, with 7,096 DC fast chargers operational by September 2025, progressing towards the 2030 target of 12,000. These figures highlight the impact of government incentives and market demand in establishing Thailand as a regional leader in green mobility.
