Thailand Rolls out Incentives for Upcoming EV Developers

Thailand will grant incentives and tax exemptions to carmakers who establish electric vehicle research and development centers, a government official said on Oct 12, as it looks to expand on its early success as a regional EV pioneer. It is the region's top vehicle producer and exporter, with Japanese manufacturers such as Toyota Motor Corp, Isuzu Motors, and Honda Motor dominating the Thai market for decades.

Thailand intends to convert approximately 30% of its annual vehicle output of 2.5 million vehicles to EVs by 2030 and is planning incentives to promote additional investment and conversion into EV manufacture.

"Research and development activities are one of our top priorities because we would like to strengthen our competitiveness," Narit Therdsteerasukdi, secretary general of the Thailand Board of Investment, told Reuters,

He said that tax discounts and grants will be provided to automakers who commit to R&D investment in Thailand, and extra incentives will be offered if they relocate their regional headquarters to the country. Chinese automakers have agreed to invest $1.44 billion in new Thai manufacturing facilities, with BYD investing roughly $500 million to create 150,000 EVs annually.

Its competitor, Great Wall Motor, announced in May that it was exploring establishing an R&D center in Thailand to focus on battery-powered pickup trucks, a backbone of the Thai car market. Toyota, Honda, Nissan Motor, and Mitsubishi Motors, who already have R&D facilities in Thailand, will be encouraged to work on EVs in the country, according to Narit.