Thailand Attracts Hybrid Car Makers with New Incentives

Thailand is offering new perks to hybrid car manufacturers in a bid to strengthen its place in the global automotive industry. The Board of Investment (BOI) has announced a plan to cut excise taxes for hybrid vehicles from 2028 to 2032. This is part of Thailand’s strategy to stay competitive as the auto industry shifts towards more sustainable options.

To qualify for these tax breaks, companies need to invest at least 3 billion baht (around $90 million) over the next four years. They also have to use locally made parts, which is great news for local suppliers. Another condition is that the cars must include advanced driver-assistance systems (ADAS), reflecting the growing demand for technology in vehicles.

For years, Thailand has been a major player in car manufacturing in Southeast Asia, hosting top carmakers from around the world. Now, Chinese companies like BYD and Great Wall Motor have started investing heavily in the country. These new incentives are designed to make sure Thailand stays at the forefront. Right now, seven automakers—four from Japan and three from China—are already benefiting from similar BOI programs.

Besides hybrid cars, Thailand is also pushing for more electric vehicle (EV) investment. The government is offering tax breaks and support for building EV infrastructure, like charging stations and battery production. While there are challenges, such as sourcing local parts and meeting technical requirements for ADAS, the long-term benefits of reduced taxes and greater market opportunities make it an attractive move for manufacturers.

Thailand’s new incentives show its commitment to driving innovation in the automotive sector, especially in eco-friendly technologies. By encouraging hybrid and electric vehicle production, Thailand aims to remain a leader in the global car industry.

For more details on how your company can benefit from BOI incentives, feel free to reach out to us.

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