Thailand’s JV Incentives for Automotive Parts Manufacturing
BANGKOK (Reuters) – Thailand’s Board of Investment has approved incentives for joint ventures (JV) between Thai and foreign companies for manufacturing automotive parts with various propulsion systems.
As Southeast Asia’s largest automotive production center, Thailand serves as an export base for leading car manufacturers. The government is particularly encouraging investments in electric vehicles through attractive incentives.
Eligible projects include both new initiatives and existing manufacturers transforming into JVs, which can benefit from two years of additional tax exemptions, up to a total of eight years, provided applications are submitted by the end of 2025.
To qualify, a JV must invest a minimum of 100 million baht ($2.82 million) in auto parts manufacturing, include both a Thai and a foreign company, with the local entity owning at least 60% and contributing 30% of the JV’s registered capital.
On Wednesday, the BOI also approved South Korean Hyundai Motor Company’s investment of 1 billion baht ($28 million) to establish a facility for assembling EVs and batteries in Thailand.
($1 = 35.48 baht)
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