Deco Green Energy Co, a Thai electric motorcycle manufacturer and distributor, signed an agreement yesterday with the Excise Department to promote battery electric vehicles (BEVs) under the government's subsidy and tax incentive measures.
Deco produces both vehicles and components, including electric motorcycles, electric bicycles, spare parts and lithium batteries.
The cabinet approved BEV promotion measures on Feb 15. As part of the measures, imported battery electric motorcycles that follow the guidelines face an excise tax levy of only 1% during 2022-2023.
The vehicles are also entitled to a state subsidy of 18,000 baht per motorcycle. This subsidy is passed on to purchasers as a discount. The same tax and subsidy measures apply to battery electric motorcycles produced locally by participating manufacturers during 2022-2025.
Department director-general Lavaron Sangsnit said Deco is the first electric motorcycle manufacturer to agree to the measures.
He said the company plans to produce 32,000 battery electric motorcycles in 2022, 38,400 units in 2023, 46,400 units in 2024 and 56,000 units in 2025.
Three other companies -- Toyota Motor Thailand, Great Wall Motor Manufacturing (Thailand) Co and MG Sales (Thailand) Co -- signed similar BEV agreements with the department, which is expected to result in wider adoption of EVs in Thailand.
Last week Mr Lavaron said the National Electric Vehicle Policy Committee will consider promotion measures for the production of EV batteries in Thailand as the next step in promoting EV adoption. A department source who requested anonymity said earlier the EV committee is considering a subsidy to support battery purchases.
