Thailand seeks to lure more electric vehicle makers

Thailand seeks to lure more electric vehicle makersThailand’s Board of Investment (BOI) has announced new packages and privileges for electric vehicle companies to establish operations in the Eastern Economic Corridor, a new economic priority zone for the country’s manufacturing and industry.

Electric vehicle production is one of the Thai auto industry’s fastest growing subsectors. According to analysts, the number of electric cars to be produced in Thailand is expected to grow to 1.2 million by 2036, the BOI said in a release.

Thailand’s energy policy is helping to establish a complete ecosystem for electric vehicles that includes manufacturers, as well as companies that build the infrastructure to supply power to such vehicles. Furthermore, Thailand offers easy access to China, whose industrial policy is also dedicated to developing a robust domestic market for electric vehicles.

“Our supportive government policies and substantial assistance in the form of tax and non-tax incentives make Thailand the top destination for foreign investors in the automotive industry,” said Chokedee Kaewsang, the BOI’s deputy secretary general.

“We look forward to remaining at the forefront of global automobile production and attractive electric vehicle production to the country by way of these incentives.”

Under Thailand’s current tax incentive programme, available to auto manufacturing and auto parts companies, qualified electric vehicle companies are now eligible from five to eight years of corporate tax exemption and exemption of import duties on machinery.

Manufacturers producing more than one key electric vehicle component may have an additional year of tax exemption per key component, capped to a maximum of ten years. Deadline for application submission is December 31, 2018.

Thailand has already seen an increase in applications for electric vehicle projects. The BOI reports that it has approved 754 investment projects during the first six months of 2018, including applications within the electric vehicle category which represent a value of investment greater than $600 million.

In August, the board approved two large projects, by Nissan Motor (Thailand) and Honda Automobile (Thailand), to manufacture hybrid electric vehicles.

Nissan’s manufacturing facility, representing an investment of $325 million, will be located in Bang Saothong in Samut Prakarn province and will produce e-Power hybrid electric vehicles; the facility will be Nissan’s second production base for this product after Japan. Honda’s new facility, representing an investment of about $174 million, will be located at Rojana Industrial Parks in Ayutthaya and Prachinburi provinces and will manufacture hybrid electric vehicles and hybrid vehicle batteries.



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Thailand’s Board of Investment (BOI) has announced new packages and privileges for electric vehicle companies to establish operations in the Eastern Economic Corridor, a new economic priority zone for the country’s manufacturing and industry. Electric vehicle production is one of the Thai auto industry's fastest growing subsectors. According to analysts, the number of electric cars to be produced in Thailand is expected to grow to 1.2 million by 2036, the BOI said in a release. Thailand's energy policy is helping to establish a complete ecosystem for electric vehicles that includes manufacturers, as well as companies that build the infrastructure to...

Thailand seeks to lure more electric vehicle makersThailand’s Board of Investment (BOI) has announced new packages and privileges for electric vehicle companies to establish operations in the Eastern Economic Corridor, a new economic priority zone for the country’s manufacturing and industry.

Electric vehicle production is one of the Thai auto industry’s fastest growing subsectors. According to analysts, the number of electric cars to be produced in Thailand is expected to grow to 1.2 million by 2036, the BOI said in a release.

Thailand’s energy policy is helping to establish a complete ecosystem for electric vehicles that includes manufacturers, as well as companies that build the infrastructure to supply power to such vehicles. Furthermore, Thailand offers easy access to China, whose industrial policy is also dedicated to developing a robust domestic market for electric vehicles.

“Our supportive government policies and substantial assistance in the form of tax and non-tax incentives make Thailand the top destination for foreign investors in the automotive industry,” said Chokedee Kaewsang, the BOI’s deputy secretary general.

“We look forward to remaining at the forefront of global automobile production and attractive electric vehicle production to the country by way of these incentives.”

Under Thailand’s current tax incentive programme, available to auto manufacturing and auto parts companies, qualified electric vehicle companies are now eligible from five to eight years of corporate tax exemption and exemption of import duties on machinery.

Manufacturers producing more than one key electric vehicle component may have an additional year of tax exemption per key component, capped to a maximum of ten years. Deadline for application submission is December 31, 2018.

Thailand has already seen an increase in applications for electric vehicle projects. The BOI reports that it has approved 754 investment projects during the first six months of 2018, including applications within the electric vehicle category which represent a value of investment greater than $600 million.

In August, the board approved two large projects, by Nissan Motor (Thailand) and Honda Automobile (Thailand), to manufacture hybrid electric vehicles.

Nissan’s manufacturing facility, representing an investment of $325 million, will be located in Bang Saothong in Samut Prakarn province and will produce e-Power hybrid electric vehicles; the facility will be Nissan’s second production base for this product after Japan. Honda’s new facility, representing an investment of about $174 million, will be located at Rojana Industrial Parks in Ayutthaya and Prachinburi provinces and will manufacture hybrid electric vehicles and hybrid vehicle batteries.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00

 

 

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