The measures for 2022 and 2023 greenlighted Tuesday by the cabinet include subsidies of between 70,000 baht and 150,000 baht (US$2,200 and US$4,600), depending on the model and battery capacity, according to local media. The excise tax on these vehicles will also be cut to 2% from the usual 8%.

Import duties will be lowered by between 20% and 40%. These can normally run as high as 80%, though a trade agreement has eliminated tariffs on Chinese-made electric vehicles.

Japanese-made models face a 20% duty, which is expected to be removed for purchases that meet the government’s requirements.

Electric models from SAIC Motor and Great Wall Motor are currently sold for around 1 million baht, or US$31,000, a third less than the promotional price of 1.5 million baht for Nissan Motor’s Leaf.

Automakers benefiting from the programme will be required to start making electric vehicles in Thailand by 2024.

Thailand, Southeast Asia’s largest auto-manufacturing hub, aims to have electric vehicles account for 30% of production by 2030.

Japanese automakers, which are responsible for 90% or so of the country’s output, focus on hybrids and conventional gasoline-fueled models, and Chinese players have been importing electrics from China.

Mercedes-Benz is set to become the first major automaker to manufacture electric vehicles here this year.

Mitsubishi Motor and SAIC plan to start in 2023, and a joint venture between Thai state-run energy group PTT and Taiwan’s Hon Hai Precision Industry, or Foxconn, is slated to begin production in 2024.