Thailand Pushes Forward Hybrid Vehicles With Fresh Incentives

Thailand's Board of Investment (BOI) has declared fresh incentives to promote the nation's manufacturing of hybrid vehicles, which is scheduled to kick-off in 2028 and last until 2032. These incentives also include a reduction in excise duty.

To qualify for these incentives, automakers will need to invest a minimum of TBH 3 billion (RM387 million) over the next four years and use locally sourced components in their vehicles. Additionally, all vehicles must also be equipped with advanced driver-assistance systems (ADAS).

This initiative is part of Thailand’s strategy to facilitate a smooth transition from ICEs to EVs ultimately and bolster its position as a leading hybrid vehicle producer. Additionally, as a long-standing hub for automobile manufacturing in the region, Thailand serves as a key production and export base for major global brands like Toyota and Honda despite some smaller brands like Suzuki and Subaru having shut their production plant there.

The Thai government's implementation of favourable policies has also in recent times attracted investments from Chinese EV manufacturers such as BYD and GWM. BYD had earlier this month opened its new production plant in Thailand and promised an investment of US$1.44 billion (RM6.6 billion).

Currently, seven automakers—four from Japan and three from China—are benefiting from BOI's incentives and are expected to draw in investments totaling THB 50 billion (RM6.5 billion).

Thailand's appeal to these manufacturers is based on its advantageous position in Southeast Asia, as well as its advanced infrastructure, highly qualified workforce, and accommodating government regulations. Furthermore, its close proximity to important regional markets helps as well.

Source: Pattaya Mail