BoI launches new promotion to woo EV manufacturers, ready to send Tesla a special invite
At a meeting last week chaired by Prime Minister Prayut Chan-o-cha, the Board of Investment (BoI) agreed to a new round of investment promotion for electric vehicles (EV) in a bid to lure Chinese automakers as well as woo world-famous EV manufacturer Tesla with an eight-year corporate income tax exemption.
The previous BoI plan (2017-2019) supported the manufacture of EV and hybrid EVs in the form of passenger cars, trucks and buses, while the new plan covers more vehicles, including motorbikes, motor tricycles and boats.
Under the new promotion, tax exemption will be granted under the following criteria:
• Manufacturers of battery operated or hybrid electric vehicles that have invested more than Bt5 billion will be entitled to corporate income tax exemption for eight years.
• Manufacturers with an investment of less Bt5 billion will be granted corporate income tax waiver for three years, provided they manufacture at least three types of parts for electric vehicles.
• Manufacturers of electric motorcycles with batteries will get a three-year waiver on corporate income tax.
• Manufacturers of electric buses and electric trucks with batteries get a three-year corporate income tax exemption.
In addition to tax exemptions, every EV-related business will get additional benefits based on specific conditions, such as the production of key vehicle parts or investment in research and development.
“The promotion of electric vehicle production will help make Thailand a hub for trade and investment as well as a global production base. Also, businesses will be given a chance to efficiently adapt to developments, so they are in line with the competition,” said BoI secretary-general Duangjai Asawachintachit.
Under the new plan, BoI hopes to attract new investors such as the Chinese automaker Great Wall Motor. It is also planning to encourage Tesla to set up a production base in Thailand.
Tesla currently has production bases in the United States, Germany and China, but has provided no clear indications on whether it plans to invest in the ASEAN region. It recently sent a team to study investment conditions in different countries.
BoI’s first investment promotion was quite successful with 26 automakers showing interest in the projects, worth an investment of more than Bt78 billion.