(CTN News) – Regional automobile manufacturing hub Thailand’s Board of Investment (BOI) said on Friday that it will give investment incentives for hybrid vehicle makers, with hybrid excise taxes being reduced from 2028 to 2032.
Thailand has long been a regional hub for auto production and an export base for several of the world’s largest automakers, including Toyota and Honda.
Recent investments from Chinese electric car manufacturers such as BYD and Great Wall Motor have shook up the market, and Thailand has been proactive in extending incentives to attract new enterprises.
Impact on Thailand’s Automotive Sector
“This is an important technology in the transition to electric vehicles,” BOI Secretary-General Narit Therdsteerasukdi said of hybrid automobiles.
“Thailand has the capacity to be a key producer of hybrid vehicles … and supporting hybrid production will preserve auto parts manufacturing,” he added. The measures are intended to attract 50 billion baht ($1.39 billion) in investment.
Excise taxes will be reduced in five years for hybrid car manufacturers who invest at least 3 billion baht over the next four years and employ locally sourced parts, according to the BOI.
Vehicles must also have advanced driver assistance systems to qualify.
According to Narit, seven automakers are now benefiting from BOI subsidies, with four from Japan and three from China.
Source: Reuters
