Transport Department Proposes 6 Billion Baht Vehicle Trade-In Program
The Department of Land Transport has proposed a 6 billion baht vehicle replacement program funded by the loan act budget to the Ministry of Finance's screening committee. The scheme targets 150,000 pickup trucks registered before 2012 with a 40,000 baht subsidy each for Euro 5 compliant replacements, while taxis and motorcycles will receive down payment incentives to switch to electric or hybrid vehicles. Fewer than 30,000 taxis are currently registered nationwide, and finance companies can access soft loans from the Government Savings Bank to support the transition.
The Department of Land Transport plans to draw 6 billion baht from the loan act budget to implement an "old vehicle for new vehicle" project covering pickup trucks, taxis, and motorcycles, targeting a 40,000 baht subsidy per pickup truck. The DLT revealed it has proposed the vehicle replacement project to the loan screening committee chaired by the Permanent Secretary of the Ministry of Finance, to consider using loan act funds to support the transition to clean energy vehicles and reduce emissions from old vehicles, covering pickup trucks, taxis, and motorcycles. For pickup trucks, owners of vehicles registered before 2012 must trade in their old vehicles for new ones meeting Euro 5 low-emission standards, targeting 150,000 vehicles with a 40,000 baht subsidy each, totaling approximately 6 billion baht to be drawn from the loan act. For taxis and motorcycles, the measure will use down payment discounts to encourage switching to electric vehicles (EVs), with taxis able to choose between EVs or hybrids. Currently, fewer than 30,000 taxis are registered nationwide, including both cooperative and private taxis. Meanwhile, finance operators can apply for low-interest soft loans from the Government Savings Bank to support lending to vehicle buyers.
