The Excise Department will start paying a subsidy by the end of this month on the first lot of 500 electric vehicles (EVs) that consumers purchase from EV manufacturers participating in its subsidy measure to support the EV sector, said department spokesperson Nutthakorn Utensute.
The cabinet approved a 2.9-billion-baht budget late last month for the subsidy programme to promote the use of battery electric vehicles (BEVs).
The move is part of its overall subsidy and tax incentive measures to encourage BEV usage.
The first lot of 500 BEVs are those finished registering with the Land Transport Department, while another 1,700 EVs are awaiting registration.
Eight EV manufacturers have participated in the government's subsidy scheme, of which six are electric car manufacturers and the rest are electric motorcycle makers. Three more electric carmakers are expected to take part in the scheme soon.
Participants are required to sell their BEVs on a discount basis to consumers, according to the subsidy support.
So far around 10,000 BEVs have been booked by consumers under this scheme.
Mr Nutthakorn added the subsidy of 2.9 billion baht should be enough for this year. The amount means the government subsidises around 150,000 baht per BEV.
The government will provide the subsidy for BEV passenger cars with no more than 10 seats and a recommended retail price of no more than 2 million baht.
Cars with a battery capacity from 10 kilowatt-hour (kWh) but less than 30 kWh will receive a subsidy of 70,000 baht per unit.
Those with a battery capacity of 30 kWh or above will receive a subsidy of 150,000 baht per unit.
The government will provide a subsidy of 150,000 baht to locally produced BEV pickups with a recommended retail price of no more than 2 million baht and with a battery capacity of 30 kWh or higher.
A BEV motorcycle with a recommended retail price of no more than 150,000 baht will receive a subsidy of 18,000 baht per unit.