Thailand seeks ฿6 billion for proposed pickup trade-in scheme
Eligible motorists would receive ฿40,000 towards a locally made replacement vehicle, but funding approval is still pending.
Thailand’s Excise Department has requested ฿6 billion for a proposed programme to replace 150,000 older vehicles with domestically manufactured pickups or pickup-based passenger vehicles. The scheme would provide ฿40,000 per eligible motorist, with spending scheduled to start in January 2027 if funding is approved.
Thansettakij reported on November 2, citing a Finance Ministry source, that the department was seeking the money through the government’s 2026 borrowing programme. The proposal aims to support vehicle sales and reduce PM2.5 pollution.
Eligibility would be limited to Thai nationals aged at least 20, with each person allowed to exchange one qualifying vehicle towards one replacement. Vehicles surrendered must have been registered before 2012, have their annual tax paid and carry identifiable engine and chassis numbers. They must also be free from outstanding financing agreements and legal seizure orders.
The subsidy would offset a deposit or purchase price, rather than be handed to buyers as cash. Replacement vehicles would need to satisfy specified emissions and technology requirements, including Euro 5 or Euro 6 standards and a carbon dioxide ceiling of 185 grammes per kilometre.
Manufacturers taking part would be expected to provide further discounts, though no amounts have been specified. Buyers of qualifying electrified pickups could seek Government Savings Bank soft loans carrying annual interest of no more than 5%.
Dealers would handle deregistration and transfer surrendered vehicles to certified dismantlers. Subsidies would be channelled by the Government Savings Bank through participating manufacturers and dealers.
The department projects at least ฿82.5 billion in economic activity and annual greenhouse gas reductions of at least 310,000 tonnes of carbon dioxide. It also estimates PM2.5 and nitrogen oxide emissions from replaced vehicles could fall by at least 30%. However, it says certified dismantling facilities currently have capacity for only around 50,000 vehicles a year.
