The Thailand Board of Investment’s (BOI) New York office announced the government’s plans to implement a new 5-year economic strategy that embraces the Bio, Circular and Green (BCG) economy and a comprehensive set of tax incentives supporting growth of Thailand’s Electric Vehicle (EV) industry.
Underpinning the Thai Government’s commitment to sustainability, the BOI’s strategic plan to support the BCG economy, includes four key industries; agriculture and food; healthcare and medical services; energy and biochemicals; and the creative economy and tourism.
For the EV industry, the BOI implemented a new set of incentives covering major aspects of the electric vehicle supply chain, with a focus on battery operated electric vehicles. Four additional categories of EV components have been added to the program, namely high voltage harnesses, reduction gears, battery cooling systems and regenerative braking systems.
The incentive package includes tax cuts for the local production of critical parts.
Thailand’s EV incentives programs have had great success, attracting more than 26 investment projects, seven of which have already begun commercial operations. Nissan, Honda, and Toyota have begun producing hybrid electric vehicles, Mercedes Benz and BMW are producing plug-in hybrid electric vehicles, and FOMM and Takano are producing battery electric vehicles.
“BCG and Sustainability are at the forefront of Thailand’s economic policy,” said Vorawan
Norasucha, Director of the Thailand Board of Investment New York Office, “Our tax incentives will continue to support the growth of clean industries and the uptake of green technology in Electric Vehicles and other sectors.”
“Thailand is a big contributor to the global EV industry, and the success of our last incentives program underscored the demand for Thai-based operations from global OEMs and parts manufacturers.”
