Thailand has introduced a new incentive program to encourage joint ventures (JVs) between Thai and foreign companies in the automotive parts manufacturing sector. This initiative, led by the Thai Board of Investment (BOI), aims to enhance Thailand’s role as a leading hub for vehicle production, including electric vehicles (EVs). Already recognized as Southeast Asia’s largest automotive production center, Thailand seeks to solidify its position in the global automotive industry, particularly within the growing EV market.
The incentive program includes key benefits, such as additional tax exemptions. New projects and existing parts manufacturers already benefiting from BOI promotions, but transitioning into a JV, can now qualify for an additional two years of tax exemption, with a maximum cap of eight years. Companies must apply for these incentives before the end of 2025 to be eligible.
To qualify for the incentives, a JV must invest at least THB 100 million ¡ (approximately USD 2.82 million) in automotive parts manufacturing. The JV must also consist of a Thai and a foreign company, with the Thai firm required to hold at least 60% ownership and contribute a minimum of 30% of the JV’s registered capital.
This initiative underscores the Thai government’s commitment to fostering investment in the automotive industry, particularly in alternative propulsion systems. By offering these attractive incentives, Thailand aims to attract both domestic and international companies to establish JVs and expand manufacturing operations in the country.
The recent approval of Hyundai Motor Company’s investment of THB 1 billion (approximately USD 28 million) to establish an EV and battery assembly facility in Thailand further highlights the government’s dedication to positioning the country as a leader in advanced automotive technologies.
(Source: WION)
