BOI Thailand calling the Dawn of EV era of the Thai Automobile Industry

It is very likely that the vehicle that you bought in Southeast Asia, Australia, or New Zealand was made in Thailand. In 2022, Thailand ranked 10th globally in terms of automobile production volume. The kingdom leads the chart in south-east Asia.

Holding an identity as the “Detroit of Asia”, Thailand has been the production ground for the global pioneers of the automobile industry, Toyota and Mitsubishi, since the 1960s. Very soon, the trend was picked up by other veteran brands like General Motors, Ford, Mercedes-Benz, and BMW.

These facts are evident enough to support the statement that undoubtedly, Thailand has a great future in the automobile industry. But lately, the automobile industry is going through a transformation worldwide. And that is the adoption of technologies that enables automobiles to use other sources of power other than petroleum.

Supporting this transition, various concepts of purely electric and hybrid vehicles are coming to the forefront. Being a leader in the segment, how can Thailand stay back in its implementation?

To support the sustenance of the industry in this paradigm shift in automobile technologies, the Board of Investment of Thailand has taken a great lead. The body has announced various incentives and privileges for companies and investors planning to start ventures in the electric vehicle segment of the Thai automobile industry.

Are you from the automobile industry and planning to make a transition to the EV vertical? Then you should plan the same in Thailand to avail some benefits that no business owner can afford to miss.

To ignite more zeal into your aspiration of starting an electric vehicle business in Thailand, let us first share the benefits that you can receive from BOI Thailand.

BOI Thailand Tax Incentives for Electric Vehicle Businesses

The tax incentives that electric vehicle businesses in Thailand depend greatly on the type of activity they wish to conduct in Thailand. BOI always focuses on activities that can promote the socio-economic position of the kingdom. Additionally, eligibility for the incentives also depends on the investment volume.?

We are pretty sure that you will know about the eligibility of your EV business to grab BOI benefits in Thailand if you read till the end of this article. Now let us check the incentives that BOI Thailand has allotted for foreign and Thai investors for starting and doing EV business in Thailand.

Note that Merit Incentives can be Corporate Income Tax exemptions for up to 13 years in total. Additionally, there can be various other incentives that an EV project can avail of depending on its business activity.

Activities Eligible for BOI Incentives in the Thai EV Sector

With the advancement in technology, the list of BOI-eligible activities may always be subject to expansion. As of now, the following are the primary activities that can attract the BOI incentives for foreign and Thai investors:

If you have a lesser budget, you may proceed towards the manufacturing of electric motorcycles, batteries, and/or parts. In that case, irrespective of the segment you cover, you will be eligible for A4 incentives from BOI Thailand. Following are the details:

?Apart from these, BOI Thailand also offers attractive incentives for the manufacturing of Electric Tricycles, Electric buses, Trucks and Ships. BOI promotions are also applicable for repairing the same along with manufacturing batteries and spare parts for them. The promotions are on the scale of A1, A2, A3, and A4 incentive slabs.?

Board of Investment Resources

If you are doubting the information that we are providing, let us give you some assurance. Following are the BOI Thailand announcements declaring the same facts that we illustrated till now:

Board of Investment Announcement No. 2/2562 Investment Promotion for Manufacture of Electric Vehicles?

Board of Investment Announcement No. 3/2564 Investment Promotion Policy for Manufacture of? Electric Vehicles, Parts & Equipment for Electric Vehicles?

Board of Investment Announcement No. Sor. 8/2564 Amendment of Investment Promotion Policy for Manufacture of Electric Vehicles??

The Bottomline

If you have read the article thoroughly, you must have identified that BOI Thailand is willing to promote activities that are not only up to the production of electric vehicles. Additionally, the agency is ready to promote activities leading to the maintenance and management of such vehicles.?

Basically, the EV industry is one of the segments of greatest focus under the Bio-Circular-Green initiative of the Royal Thai Government. So, if your project is able to bring in developments in the BCG initiative of BOI Thailand, you can easily bag the promotion.

For ease of application and assurance in obtaining the BOI Promotion for your electric vehicle project in Thailand, email us at [email protected].