Toyota signs agreement for EV incentives in Thailand

Toyota Motor signed an agreement in Thailand to gain tax incentives and a subsidy for its battery electric vehicles (BEVs) from the Excise Department on Friday.

This comes as part of a government effort to make electric vehicles (EVs) more affordable.

The agreement was signed at the department and secures tax incentives and a subsidy for the automaker’s bZ4X vehicles.

The past agreements led to orders for more than 5,000 vehicles.

Excise tax for BEVs has been reduced from 8% to 2% until 2026, with subsidies of 70,000-150,000 baht ($2034 – $4359) per car available to consumers.

Other supportive measures consist of the BEV import duty being adjusted to not more than 40% from an initial 80% in the case of imports outside free trade agreements.

The rate has reduced the import duty of BEVs from Japan to 20%, South Korea to 40%, and Europe to 40% while the BEVs imported from China have a 0% duty under a bilateral agreement.

State subsidies and tax incentives are can cut BEV prices by at least 150,000-200,000 baht every car.