Thailand: EV investment promotion remains key focus of the BOI

11 Mar 2024    1 minute read

In brief

The automotive industry has remained one of the focus industries promoted by the Thailand Board of Investment (BOI). In 2023, the automotive industry ranked among the top three industries with the highest number of approved projects, totaling 151. These projects attracted approximately THB 42,200 million in investment to Thailand.

To support the government's priorities of increasing competitiveness in the automotive industry, complying with the national sustainability commitment, and promoting Thailand as the regional electric vehicle (EV) hub, the BOI has introduced measures over the past few years to attract investment in EV-related businesses. The introduction of EV-related investment promotion measures has also helped strengthen Thailand's position as a leading ASEAN automotive manufacturer and exporter.

Contents

In more detail

The BOI currently promotes investment in a wide range of EV-related businesses, including:

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In addition to the general tax and non-tax incentives (as provided below), EV-related projects promoted by the BOI will be granted an exemption from corporate income tax (CIT) for a period ranging from three to eight years, depending on the type of the promoted business.

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In addition to the above measures, the production of four-wheel EVs and EV platforms is eligible for an additional 3-year CIT exemption in an amount equal to 50% or 100% of the additional investment in automation and robotic systems. This measure is available for both existing and new promoted projects, provided that the investment promotion is applied for by the last working day of 20241.

The EV-related investment promotion measures have been well-received by the business sectors. As of December 2023, the BOI had approved at least 26 EV-related projects.

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Due to the increased interest in EV investment, the BOI has reiterated at various occasions that it will continue to heavily focus on promoting EV-related businesses and introducing more attractive EV investment promotion schemes in the near future. In its most recent statement, it is understood that the BOI is currently considering introducing an investment promotion scheme to support the use of EVs for commercial purposes.

We will continue to closely monitor the developments and will provide updates.

For more details, please contact our team at Baker McKenzie.

1 BOI's Announcement No. 2/2566 re: Investment Promotion Measures to Elevate the Automotive Industry, dated 12 December 2023.

 

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