Thailand Board of Investment rolls out policies to help increase Thai eco-friendly auto production; industry is expected to be worth 20 billion baht within the next 5 years.
BANGKOK, THAILAND (PRWEB) SEPTEMBER 26, 2017
Thailand is quickly cementing its status as ASEAN’s leading electric vehicle (EV) hub and main production base after receiving new investments from leading auto manufacturers including BMW, Nissan, and Toyota. This status is further reinforced by the Thai government’s commitment to have 1.2 million electric cars on the roads in Thailand by 2036.
To help increase demand and boost the production of environmentally friendly cars in the country, Thailand Board of Investment (BOI) launched new schemes to promote electric cars such as waiving tariffs for imported EVs, offering incentives for EV part manufacturing and assembly, and promoting the establishment of charging stations nationwide.
Approved tax incentives aim to promote production of three types of electric cars in Thailand including hybrid electric vehicles, plug-in hybrid electric vehicles, and battery electric vehicles. Production of major parts for HEVs, BEVs, and PHEVs can lead to corporate income tax exemption for up to 8 years.
The industry’s growth was boosted further last year when the nation’s largest energy provider, PTT Pcl, signed a deal with six major automakers to start producing electric cars, including the Thailand units of BMW, Mercedes-Benz, Mitsubishi, Nissan, Porsche and Volvo.
Major global companies are already taking advantage of Thailand’s capabilities in the automotive sector as it pertains to EVs. BMW Group Thailand has delivered their BMW i3 (94Ah) battery to the Thailand Automotive Institute, which has a capacity of 33 kilowatt hours (kWh) thanks to the higher storage density of the lithium ion cells. In addition, Nissan recently announced the company’s plans to offer the LEAF electric vehicle in Thailand starting next year. The company is introducing e-power technology into Thailand’s auto market with a new system that doesn’t require external charging, instead receiving electricity from a 3-cylinder, 1.2-litre internal combustion engine that serves as an in-house generator. Toyota Motor Corporation is also investing $570 million USD to start manufacturing hybrid electric vehicles (HEVs), and electric vehicle developer FOMM Corporation will start assembling electric vehicles in Thailand next year.
To further aid in developing the country’s EV industry, Thailand's Energy Absolute plans to establish and operate 1,000 electric-vehicle charging stations in the country by the end of 2018, investing a projected 600-million-baht.
Another milestone in Thailand’s mission to become a major EV hub was the opening of Thailand’s first Technology and Innovation Learning Center for Electric Vehicles in July 2017. The center will be an EV technology development and learning center for entrepreneurs, government officials and general public to help generate public awareness of a sustainable future with EV technology.
Source: Thailand Board of Investment
Illustration Photo: Hyundai Ioniq Electric Vehicle (credits: Automotive Rhythms / Flickr Creative Commons Attribution-NonCommercial-NoDerivs 2.0 Generic (CC BY-NC-ND 2.0))