Car companies in Thailand which are taking part in the Thai government’s EV subsidy programme are required to repay the subsidies if they fail to comply with the conditions of the subsidies, according to Thai deputy finance minister Paopoom Rojanasakul, reported Bangkok Post.
The publication cites media outlets as reporting that Neta Auto Thailand may be required to pay more than two billion baht (RM259 million) back to the government of Thailand if it fails to meet production targets. In March this year, Thailand’s English daily The Nation reported that the brand would resume EV production in Thailand after clearing its debts with suppliers and dealers.
Subsidies from the Thai government are given on the condition that carmakers build manufacturing plants for the production of EVs in the country to eventually replace imports, and if a company cannot meet this requirement, it must return the subsidy funds, Paopoom said.
Additionally to fulfill the requirement, companies need to produce vehicles domestically in Thailand at a ratio of 1.5 locally made BEVs for every imported vehicle by 2026, the kingdom’s finance ministry noted, according to the news outlet.
Under the second phase of Thailand’s EV subsidy programme from 2024 to 2027, passenger cars and pick-up trucks receive a subsidy to up to 100,000 baht (RM12,967) per unit, while motorcycles are eligible for eligible for a subsidy of up to 10,000 baht (RM1,298) per unit.
Last week, the Thai finance ministry stated that the government is looking to revise the rules for subsidy payments to EV manufacturers as it seeks to clarify the conditions for suspending payments to firms which are unable to meet local production requirements, according to a separate Bangkok Post report.
Based on Thailand’s EV production requirements, Neta needs to produce 19,000 EVs in Thailand this year, but has so far produced just 4,000 units, according to the publication.
The Thai finance ministry proposed a rule change that would require EV makers to submit a compensatory production plan every two months, and the government reserves the right to suspend subsidy payments if the carmaker fails to follow the plan, said the kingdom’s deputy finance minister.
The suspension of subsidy payments can only be enforced after the end of the specified period, which is at the end of December 2025. If any EV maker is unlikely to meet this year’s production target, no action can be taken until the scheme ends in December, Paopoom said.
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