Opposition MP Slams EV Subsidy Focus in 2027 Budget, Warns Thai Auto Industry at Risk
The government is spending billions of baht subsidizing electric vehicle (EV) manufacturers while failing to invest in workers, local suppliers and industrial infrastructure, putting Thailand's automotive industry at risk, economist and People's Party deputy leader Veerayooth Kanchoochat said during Monday's debate on the 2027 budget bill.
Veerayooth said the government has spent more than 21 billion baht subsidizing EV makers under the EV3.5 scheme while forgoing about 13 billion baht a year in import duties, but has devoted only a fraction of the budget to workforce development and testing facilities. He noted that automakers are required to produce 240,000 compensation vehicles this year but had manufactured only 31,000 units, or 13% of the target, by mid-year. He also cited Neta's withdrawal from Thailand after receiving subsidies, leaving production commitments for more than 19,700 vehicles unmet.
He said nearly 90% of the EV budget is allocated to subsidies for manufacturers, while only about 10% supports the supply side. The 2027 budget earmarks 3.5 billion baht for EV subsidies, compared with 343 million baht for testing infrastructure and 68 million baht for workforce development.
Veerayooth proposed replacing the EV Board with a Future Mobility Board, shifting spending from consumer subsidies to industrial investment, helping Thai parts makers diversify into new industries, and introducing stricter local content requirements for foreign investors. He warned that Thailand's problem is not a lack of investment but a lack of long-term strategy, saying the country risks losing both its existing automotive industry and the opportunity to develop new industries.
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