Thailand will offer investment incentives to hybrid car makers

Thailand, a regional automotive manufacturing hub, will offer investment incentives to hybrid vehicle manufacturers and excise duty on hybrid vehicles will be reduced between 2028 and 2032.

Thailand Investment Promotion Association (BOI) Secretary General Narit Therdsteerasukdi said on Friday (July 26), referring to hybrid models: "This is an important technology in the transition to electric vehicles... Thailand has the capacity to become a major producer of hybrid vehicles."

These measures are expected to attract 50 billion baht worth of investment, he added.

For decades, Thailand has been a regional center for auto production and an export base for some of the world's top automakers such as Toyota and Honda.

Recent investments by Chinese electric car makers such as BYD and Great Wall Motor have shaken up the industry, and Thailand has been actively offering incentives to attract more companies.

For hybrid car makers that invest at least 3 billion baht over the next four years and use local components, the tax rate will be reduced over five years, the Thai Investment Promotion Council said. In addition, vehicles must be equipped with advanced driver assistance systems to qualify.

Mr. Nalit said seven automakers, four from Japan and three from China, are currently taking advantage of the incentives offered by the Thai Investment Promotion Council.