The Effects of Tax Measures on Demand for EVs in Thailand

Abstract

This research article aimed (1) to study the effects of tax measures on demand for EVs in Thailand; and (2) to study other factors affecting the demand for EVs in the country. The research methods were divided into two categories: quantitative research and qualitative study. Quantitative research was conducted using time-series cross-sectional data is from the 1st quarter of 2015 – the 4^th quarter of 2022 totaling 32 quarters, requiring a unit root test for data reliability before performing a multiplicative regression analysis. A qualitative study was conducted by means of in-depth interviews using semi-structures interview tools, government agencies and private sectors, amounting to 4 cases, in order to obtain direct data that was greatly beneficial to the study. The results of studying the effects of tax measures on demand for EVs in Thailand yielded could be divided into two categories: 1. The study results from quantitative research on factor influencing on demand for EVs in Thailand, divided by the types of EVs, were as follows: 1) For electric powered vehicles cars or passenger cars with less than 10 seats, the factor influencing on demand were excise tax rates, electric car prices, policy interest rates, Gross Domestic Product, and government subsidies; 2) For electric powered vehicles pickup trucks, the factor influencing on demand were policy interest rates, excise tax rates, and foreign exchange rates; 3) For electric powered vehicles motorcycles, the factor influencing on demand were government subsidies, tariff rate, Gross Domestic Product, excise tax rates, and the price of petrol motorcycles. 2. Results from a qualitative study through in-depth interviews found that relevant sectors saw that the measures to reduce Tax rate and subsidies for EVs are important measures to boost on demand for EVs in Thailand.