If more incentives are given to PHEVs will more Malaysians choose them over EVs?
Okay, I have never been shy to share my opinion and our readers will definitely know my stance on EVs by now. I don’t like them very much with 1 or 2 very rare exceptions. Much like Toyota had believed in the past, I felt hybrids, particularly PHEVs, were the way forward and now, the Thai government may be testing that theory.
So, the Thai government has recently approved a significant shift in its automotive tax policy aimed at boosting the popularity and production of PHEVs. Effective 1 January next year, the new regulation introduces revised excise tax conditions for PHEVs that are expected to better align with global standards and encourage both consumer adoption and industry investment.
Moreover, under the new framework, PHEVs will be classified separately from passive hybrid cars, with tax rates determined exclusively by the electric-powered driving range per charge. Crucially, the reform removes fuel tank size as a factor in determining the excise tax rate. This should see more buyers choosing a hybrid as it is now also incentivised like EVs were.
The new policy sets the excise tax for PHEV passenger vehicles, defined as those with seating for ten or fewer, at 5 percent for models that offer at least 80km of electric driving range on a single charge. Vehicles falling below this range threshold will be subject to a higher tax rate of 10 percent.
These adjustments are also designed to incentivize the development and sale of PHEVs with longer electric-only ranges, reflecting a broader commitment to reducing emissions and modernizing the automotive sector. Supporters of the reform believe it will have a positive impact on both manufacturers and consumers.
On top of that, it is no secret that many governments across the globe have been pushing for EV incentives for the longest time but these have never included PHEVs. While yes, Toyota may finally be focusing more resources on fully electric models, it is still not giving up on its hybrids and I think more governments should wake up to this truth as well.
The Thai government sees this as a way to attract investment, bolster Thailand’s position in the global EV supply chain and facilitate the transition from ICE vehicles to cleaner alternatives. So now we ask the real question, considering Thailand has made this move, will MAAri and MITI in Malaysia follow this direction as plug-in hybrids become more popular in Malaysia?
We got all this from Bangkok Post and their full article is linked here. Thank you Bangkok Post for the information and images.
