Delta Electronics (Thailand) Public Company Limited (SET: DELTA) denies a report of a 2 billion baht forfeiture over alleged failure to meet government EV production subsidy requirements, calling the claims untrue.
This follows a report regarding the case of Delta applying for investment promotion related to electric vehicles (EVs) from Thailand’s Excise Department, receiving cash subsidies at an average of 100,000 baht per vehicle, for the construction of factories and for raw materials—totaling about 2 billion baht.
Delta stated it never applied for government subsidies aimed directly at EV manufacturers, as per Finansia Syrus Securities, citing a brief call with Delta.
Paopoom Rojanasakul, Thailand’s Deputy Finance Minister, addressed questions about the subject and hinted at the possibility of enforcing penalties. He emphasized the need to balance support for manufacturers with the government’s overall policy goals. If the company or any recipient fails to meet the stipulated conditions—most notably the required vehicle production targets—they could be required to repay the subsidy, Paopoom said.
This comes amid broader challenges for Thailand’s EV industry, as some automakers struggle to maintain after-sales services and face difficulties such as delayed vehicle registrations and service center closures.
The Deputy Minister cautioned that the government will not review subsidy policies on a case-by-case basis, but rather assess the overall framework to ensure alignment with industrial policy and achieve the government’s EV push objectives.
The Excise Department has been instructed to conduct a detailed review of all projects and ensure a balanced approach that effectively drives the government’s industrial and EV policy ambitions.
