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Thailand Launches New Incentives to Attract Hybrid Vehicle Manufacturers
Thailand is currently hosting global carmakers like Toyota and Honda, now introducing new investment incentives for manufacturers of hybrid vehicles. Announced by the Board of Investment (BOI) on Friday, these measures include lowering excise taxes for hybrids from 2028 to 2032, aiming to enhance Thailand’s competitiveness in the rapidly evolving automotive industry. The BOI’s incentives target hybrid vehicle manufacturers investing at least 3 billion baht (approximately $90 million) over the next four years. These investments must incorporate the use of local parts, promoting domestic industry growth. Additionally, eligible vehicles must feature advanced driver-assistance systems (ADAS).
For decades, Thailand has tried to achieve a status for auto production and export in Southeast Asia, attracting top carmakers worldwide. Recent investments by Chinese electric vehicle (EV) manufacturers, such as BYD and Great Wall Motor, have impacted the industry. In response, Thailand is actively offering incentives to attract more firms and bolster its position as a leader in the automotive sector. Currently, seven automakers benefit from the BOI’s incentives, with four from Japan and three from China. These incentives have attracted investments and have been essential for establishing Thailand as a key player in the global automotive market.
In addition to the new incentives for hybrid vehicles, the BOI has been actively promoting investments in EV manufacturing. This includes offering tax breaks, subsidies, and support for developing EV infrastructure, such as charging stations and battery manufacturing facilities. On the other hand, manufacturers face challenges such as ensuring a steady supply of local parts and meeting the requirements for advanced driver-assistance systems. However, the long-term benefits, including reduced excise taxes and enhanced market competitiveness, make these investments attractive.
Thailand’s introduction of investment incentives for hybrid vehicle manufacturers shows the country’s commitment to fostering sustainable automotive technologies. By supporting the transition to electric vehicles and promoting advanced automotive innovations, Thailand aims to maintain its status as a regional auto-making hub and a global leader in the automotive industry.
If you have any questions regarding BOI incentives for your company, please contact us at [email protected] or via +66 (0)2 026 3284.