The Thai government is reviewing a THB24 billion (USD920 million) incentive programme to replace up to 80,000 ageing commercial transport vehicles with electric vehicles (EVs) as part of its energy transition strategy. The proposal, submitted by the Ministry of Transport to a government committee chaired by the Ministry of Finance, initially targets taxis, motorcycle taxis, tuk-tuks, buses and trucks, although the government is also considering extending the incentives to all vehicle categories. The support package could include subsidies, low-interest loans and tax incentives for eligible vehicles meeting specified age limits.
The programme gained momentum after Thailand’s Constitutional Court upheld the government’s THB400 billion emergency borrowing plan, enabling additional spending on energy transition initiatives. For taxi operators replacing vehicles reaching the 10-year age limit in 2027, the government is considering financing support that would reduce daily EV loan repayments to THB500 from around THB700 over a five-year period. Similar support is being evaluated for minibuses, vans, buses, tuk-tuks, heavy commercial vehicles and pickup trucks, including incentives for EVs and B20 biodiesel-compatible models.
The proposed scheme aims to accelerate transport electrification while supporting Thailand’s automotive industry, which has faced declining domestic demand. According to the Federation of Thai Industries, 621,166 vehicles were sold domestically in 2025, including 120,301 passenger EVs, while approximately 1.7 million motorcycles were sold during the year. Industry groups have called for any new incentives to prioritize locally manufactured EVs using predominantly domestic components to strengthen local production, employment and supply chains. Thailand has attracted more than $4 billion in EV investments, including from Chinese manufacturers BYD and Great Wall Motor, although the country’s current EV incentive programme is due to expire in 2027.