Thailand’s Board of Investment (BOI) said on Thursday that it has approved incentives for joint ventures (JV) between Thai and foreign companies to manufacture automotive parts for vehicles utilizing all types of propulsion systems.
Thailand, known as Southeast Asia’s largest automotive production hub and a key export center for leading global automakers, is actively encouraging investments in electric vehicles (EVs) with attractive incentives to attract major corporations.
New projects and existing parts manufacturers transitioning into a JV structure are eligible for an additional two-year tax exemption, capped at eight years, provided they submit their applications by the end of 2025, as per the BOI’s announcement.
A new JV must invest a minimum of 100 million baht ($2.82 million) in auto parts manufacturing, with the JV comprising a Thai and foreign company. The local entity must have at least a 60% Thai ownership and contribute a minimum of 30% of the JV’s registered capital.
In a recent development, the BOI approved a 1 billion baht ($28 million) investment by South Korean automaker Hyundai Motor Company to establish a facility for the assembly of EVs and batteries in Thailand.
