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Country Automotive

Manufacturers producing more than one key EV component may avail an additional year of tax exemption per key component, capped to a maximum of 10 years. The Thai government offers substantial backing in the form of tax and non-tax incentives to encourage foreign investment in the industry. Want the latest sent to your inbox? Further, it plans to expand and enhance the manufacturing process of electronic accessories and automotive parts. Internationally, the number of electric vehicles EVs is projected to rise to 35 percent of all vehicles by Though Thailand is moving towards production of more fuel-efficient vehicles, the popularity of EVs is still low in the country; sales of hybrid petrol-electric cars or plug-in hybrid cars in Thailand accounted for just one percent of total auto sales in To help spur the industry, the Thai government is actively promoting and attracting foreign manufacturers to use Thailand as a base for the production of green vehicles in the region. The maximum tax rate for electrified cars is To boost the component industry, the Thai government has recognized 10 components eligible for eight-year CIT holidays. Battery electric buses, on the other hand, are entitled to tariff exemptions for imported machinery and a three-year CIT exemption. Supporting this vision is the Eastern Economic Corridor EEC initiative that places a great importance on bringing next-generation automotive industry to Thailand, in particular, the electronic vehicle EV industry. By , Thailand aims to manufacture over units of vehicles to become one of the top performers in the global automotive market. Stay Ahead of the curve in Emerging Asia.

Thailand offers great investment potential as a leading country automotive production base in the Association of Southeast Asian Nations ASEAN — a fast developing region for automotive manufacturing. Your email address will not be published. Besides, the government has also announced excise tax country automotive changes to encourage EVs.

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Over a period of 50 years, the country has developed from an assembler of auto components into a top automotive manufacturing and export hub. With shipments bound for more than countries, Thailand is the 13th largest automotive parts exporter and the sixth largest commercial vehicle manufacturer in the world, and the largest in ASEAN. Excise tax on EVs is now 2 percent, down from 10 percent. Email address. Auto manufacturers in Thailand can use FTAs to gain greater market access in Southeast Asia, and enforce restrictions to protect their investments and intellectual property, while expanding upon business opportunities in terms of price competitiveness, market and business development, investment expansion, and government procurement. Notify me of new posts by email. American and Europeans are gaining ground as the manufacturers of large, luxury cars. Manufacturers of PHEV are eligible for slightly less generous incentives, with three- year corporate tax exemptions as well as import tariff exemptions on machinery. The Ministry has also reduced the excise tax on cars using E85 to 22, 27 and 32 percent, depending on engine size. There are additional benefits available to companies investing in the supercluster automotive zones in Pathum Thani, Ayutthaya, Nakhon Ratchasima, Prachin Buri, Chachoengsao, Chonburi, and Rayong. This initiative includes the introduction of over 10, natural gas-powered taxicabs, natural gas subsidization, a reduced import duty on NGV tanks from 17 percent to 10 percent, and a reduced import duty on NGV control system parts and components from 35 to 10 percent. The Ministry of Finance is offering three-year exemptions on import duties of foreign auto parts used to make vehicles Eready 85 percent ethanol, 15 percent gasoline. By , Thailand aims to boost the number of electric cars to 1. Related reading December 21, May 01, March 08, March 31, Recommended for you. Investments in HEV are entitled to an import tariff exemption for relevant machinery. These include reduced CIT — 50 percent of the normal rate — for five years, in addition to the tax-exempt period of up to 8 years under the general BOI promotion scheme; possibility to extend to year CIT exemption; personal income tax for specialists both Thai and Foreign; and possibility to get a permanent residence permit. The global demand for green vehicles is growing. Notify me of follow-up comments by email. Manufacture of key components, like for BEVs, will be eligible for an additional year of CIT relief per component, with a maximum of six years. The first two technology to be developed are hybrid electric vehicles HEVs and plug-in hybrid electric vehicles PHEVs with two respective systems — electricity-petrol and electricity-diesel. Already a subscriber? Some of the general benefits available to foreign investors include the following. Located in the three eastern provinces of Chonburi, Rayong, and Chachoengsao, the EEC framework is designed to support 10 target industries, including automobile, to promote emerging technology, innovation, and creativity within each sector through government policies and investment. The Thai automotive market is dominated by Japanese automakers that have established Thailand as the production base of one-ton pick-up trucks and eco cars for exports. Our subscription service offers regular regulatory updates, including the most recent legal, tax and accounting changes that affect your business. The aim of the EEC is to expand the value chain of the automotive industry with particular focus on surface integration design and prototyping. Besides, some of the FTAs harmonize customs codes and product standards, speeding trade flows. The tax rates for hybrids and PHEVs have been reduced, depending on their emission levels. Leave a Reply Cancel reply Your email address will not be published. In , the Thai government created a roadmap for the general popularization of electric vehicles EVs and approved a tax incentive scheme for EV production in the country. With the end of the first-time buyer scheme, the number of out-of-warranty passenger vehicles in Thailand is expected to exceed 14 million units by , with more than five million units between the age of three and eight years — offering tremendous opportunities for auto manufacturers in the country. It now produces four EV models. The latest models of EVs available are battery-powered electric vehicles BEVs , fuelled purely by electricity, and the fuel-cell electric vehicle FCVs. The outlook for the domestic market is positive, largely due to the expiry of the five year lock-up period for vehicles bought under the first-time car buyer scheme in , new model launches by foreign manufacturers, and increased government spending. Sorry, your blog cannot share posts by email.