Thailand continues to be determined in its goals to establish itself as the leading electric vehicle manufacturing center in Southeast Asia. The Board of Investment (BOI) in Thailand, responsible for encouraging foreign investment, has given the green light to 24 car makers to manufacture various types of electric vehicles, including battery electric vehicles and hybrid electric vehicles, within the country.

These manufacturers will manufacture over 500,000 EV units annually. Over the next five years, the BOI anticipates that investments in EV and EV-related projects will exceed 200 billion THB (US$5.5 billion).

Since Prime Minister Srettha Thavisin took office last September, the country has been making efforts to speed up its ambition of becoming the leading manufacturing center for electric vehicles in the region. In order to increase appeal in the sector, Thailand has notably decreased excise tax for electric cars from 8% to only 2%. Electric vehicle manufacturers can benefit from import duty reductions of up to 40% for fully assembled units.

The enhanced tax benefits are applicable to vehicles valued at 2 million THB or less. The country also seeks to encourage EV battery and charging station operators to establish their plants in the country.

“Thailand is the first country in the region to announce comprehensive measures and aggressive measures to promote the EV industry. And apart from the vehicle production, we also focus on the key parts manufacturing in Thailand, said secretary-general of Thailand’s Office of the BOI Narit Therdsteerasukdi.