Thailand, a key regional hub for automobile manufacturing, announced on Friday that it will implement investment incentives for hybrid vehicle manufacturers. The country’s Board of Investment (BOI) revealed plans to reduce excise taxes on hybrid vehicles from 2028 to 2032.
For many years, Thailand has been a significant center for auto production and serves as an export base for major global automotive brands such as Toyota and Honda. The recent influx of investments from Chinese electric vehicle manufacturers such as BYD (Build Your Dreams) and Great Wall Motor has disrupted the industry, prompting Thailand to actively offer incentives to attract more companies.
“This technology is crucial for the transition to electric vehicles (EVs),” stated Narit Therdsteerasukdi, secretary-general of the BOI, regarding hybrid models. “Thailand is poised to become a major producer of hybrid vehicles, and supporting hybrid production will help maintain auto parts manufacturing.” He also mentioned that the initiatives are projected to attract investments totaling 50 billion baht (approximately US$1.39 billion).
To qualify for the lowered excise taxes over the next five years, hybrid vehicle manufacturers must invest at least 3 billion baht within the next four years and include the use of locally sourced parts, according to the BOI. Additionally, vehicles will need to be equipped with advanced driver-assistance systems to be eligible for the incentives.
Currently, seven automakers are benefiting from the incentives provided by the BOI, with four coming from Japan and three from China.
