BOI will continue to promote investment in internal combustion engine vehicles
The Board of Investment (BOI) will support Prime Minister Srettha Thavisin's policy to maintain a production base of petrol-fuelled vehicles in Thailand.
BOI secretary-general Narit Therdsteerasukdi said the board is preparing to negotiate with car manufacturers and relevant organisations related to investments in the auto industry, including manufacturers of internal combustion engine vehicles and electric vehicles (EV), to reach a conclusion on investment promotion.
Earlier, Srettha had announced Thailand's automotive industry promotion policy, saying Thailand would continue to be a hub for makers of internal combustion engine vehicles till the end. This initiative aims to help car manufacturers that have made the shift towards electric vehicles (EV) to continue their business in petrol-driven vehicles.
The BOI has acknowledged the preliminary policy from the prime minister and might need to negotiate with various car manufacturers and state agencies. Since this matter involves both the public and private sectors, negotiations with private enterprises and all relevant organisations are necessary before a clear policy can be formulated. This will be done before the prime minister and his delegation officially visit Japan in December this year, the BOI secretary-general said.
Currently, Thailand is one of the major automobile hubs, both for domestic sales and exports. According to data from the Federation of Thai Industries (FTI), car production and exports have continued to expand. In the period from January to August this year, 1,221,878 vehicles were manufactured, an increase of 3.13%. Sales amounted to 524,784 vehicles, down 6.21%. The breakdown is as follows:
▪︎ Internal combustion engine (ICE) vehicles: 429,136 units, down 16.46%
▪︎ Battery electric vehicles (BEV): 41,844 units, up 837.79%
Plug-in hybrid electric vehicles (PHEV): 1,585 units, up 39.54%
▪︎ Hybrid electric vehicles (HEV): 52,219 units, an increase of 30.31%
The BOI chief added that the country is currently awaiting the appointment of a new National Electric Vehicle Committee (EV Board) to consider pending issues related to promotion and support. A new BOI initiative is expected to be finalised within this week. The first meeting is scheduled for October 10 to expedite various pending investment matters.
Similarly, for the upcoming roadshow to attract investments from foreign investors after the official visit to the United States this month, the BOI, together with the prime minister's delegation, will visit China from October 17-19. China is a significant target country for Thailand.