The Board of Investment (BOI) has announced new investment incentives to boost the production of hybrid vehicles within the country. Set to commence in 2028 and extend until 2032, the incentives will include reducing excise taxes for automakers that invest a minimum of 3 billion baht over the next four years and incorporate local components in their vehicles. To qualify for the reduced rates, these vehicles must also be equipped with advanced driver-assistance systems.
The BOI’s move is part of Thailand’s strategy to transition more smoothly to electric vehicles (EVs), positioning the nation as a key player in the production of hybrid vehicles. This aligns with its long-standing role as a central hub for automobile manufacturing in the region, serving as a major production and export base for leading global carmakers such as Toyota and Honda.
The recent influx of investments from Chinese electric vehicle manufacturers, including BYD (Build Your Dreams) and Great Wall Motor, has revitalized the local auto industry and prompted the Thai government to attract more firms through favorable policies.
Seven automakers are currently benefiting from the BOI’s incentives, four from Japan and three from China. The BOI anticipates that the new measures will generate investments totaling 50 billion baht (approximately US$1.39 billion). (NNT)
