Thai market extended gains in the afternoon session following the cabinet’s approval of extra incentives for electric vehicle buyers, with EA, GPSC, NEX, and KCE leading the way.
At 16.00 hrs. local time in Thailand, the SET Index rose 16.07 points or 0.95% to 1,700.76 points, with a total trading volume of THB75,725 million.
The Cabinet of Thailand in the meeting on Tuesday resolved to approve subsidies for electric vehicle buyers to take effect from May 2022 onward for three years to boost the usage of clean energy and achieve carbon neutrality.
The new subsidies will be proposed to related parties to regulate. The subsidies are as follows;
1) THB70,000-150,000 subsidies for electric cars and pickup trucks and THB18,000 for electric motorcycles.
2) Decrease excise tax for cars from 8% to 2% and 0% for pickup trucks.
3) Decrease duty tax for completely built up (CBU) cars not exceeding 40% until 2023.
4) Decrease duty tax for completely knocked down (CKD) cars
Maybank Securities (Thailand) (MST) said that the SET Index rose by more than ten points this afternoon, as the market has already priced in all negative aspects, including the Fed’s interest rate hike and tensions between Russia and Ukraine, causing the market to relax somewhat. For domestic factors, the cabinet approved measures to promote electric vehicles (EVs), making it positive for related stocks such as EA, GPSC, etc.
