Thailand, Southeast Asia’s largest auto production hub, is offering incentives to encourage joint ventures (JVs) in the automotive parts sector, specifically targeting electric vehicles (EVs). The Board of Investment (BOI) announced on Thursday that it will provide additional tax exemptions for new and existing parts manufacturers that form JVs with foreign companies.
To qualify for the incentives, new JVs must invest at least 100 million baht ($2.82 million) and have a Thai company with at least 60% ownership. The additional tax exemption, capped at eight years, is available for two years for both new and existing parts manufacturers, with applications accepted until the end of 2025. This move underscores Thailand’s commitment to transitioning to a more sustainable automotive industry and attracting foreign investment in EV technologies.
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The incentives come shortly after the BOI approved a 1 billion baht ($28 million) investment from Hyundai Motor Company to set up an EV and battery assembly facility in Thailand. This further reinforces Thailand’s position as a key player in the global EV market.