TDRI Urges Balance Between ICE and EV Automotive Support

Matichon•Economy•3d ago

Reader Briefing

TDRI suggests the Thai government balance support between the existing internal combustion engine automotive base and the emerging electric vehicle industry.

•Nannarit Pisanlupbut of TDRI stated on August 23 that Thailand is in a transition period from internal combustion engines to electric vehicles.
•The government, led by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, is preparing to overhaul the automotive excise tax structure.
•TDRI recommends a fair tax system based on vehicle cleanliness and the level of domestic investment and employment.
•Indonesia is actively attempting to attract Japanese automakers like Toyota and Honda to move production bases from Thailand.

Overview

•On August 23, Nannarit Pisanlupbut of TDRI discussed the transition of the Thai automotive industry from internal combustion engines to electric vehicles.
•Nannarit Pisanlupbut stated that the government must support future industries without abandoning the existing production base that sustains employment and large supply chains.
•Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas is preparing to overhaul the entire automotive excise tax structure.
•Nannarit Pisanlupbut argued that previous government support focused more on electric vehicles than on the existing production base.
•Toyota and Honda have raised concerns that some imported electric vehicles, particularly from China, hold a tax advantage over vehicles produced in Thailand.
•Nannarit Pisanlupbut noted that Indonesia's efforts to attract Toyota and Honda to relocate from Thailand serve as a warning for Thailand to address its weaknesses.
•Nannarit Pisanlupbut suggested that the new tax rules should provide advantages to operators who invest in factories, hire workers, and use Thai parts, regardless of their country of origin.
•Thailand needs to develop modern electric vehicles while supporting the internal combustion engine industry to maintain its regional production hub status.

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Key Entities

Person

Nannarit Pisanlupbut(นณริฏ พิศลยบุตร)

A senior scholar at the Thailand Development Research Institute (TDRI).

Ekniti Nitithanprapas(เอกนิติ นิติทัณฑ์ประภาศ)ℹ️

Deputy Prime Minister and Minister of Finance who is preparing to overhaul the automotive excise tax structure.

Organization

Thailand Development Research Institute (TDRI)(สถาบันวิจัยเพื่อการพัฒนาประเทศไทย (ทีดีอาร์ไอ))

A research institute where Nannarit Pisanlupbut serves as a senior scholar.

Toyota(โตโยต้า)ℹ️

A Japanese car manufacturer that has raised concerns about tax fairness and is being targeted for relocation by Indonesia.

Honda(ฮอนด้า)ℹ️

A Japanese car manufacturer that has raised concerns about tax fairness and is being targeted for relocation by Indonesia.

Place

Indonesia(อินโดนีเซีย)ℹ️

A competing country attempting to attract Japanese automakers to move their production bases from Thailand.

Thailand(ไทย)ℹ️

A regional automotive production hub currently transitioning from internal combustion engines to electric vehicles.