Bangkok Post

Carmakers keen to grab EV privileges


Since the government unveiled its investment privileges for electric vehicles in late March, several carmakers are keen to invest a combined 20 billion baht in making EVs in Thailand, according to the Thailand Automotive Institute.

Acting president Nattapol Rangsitpol said both existing manufactur­ers and newcomers are interested in the government’s EV promotiona­l privileges, which will be open for applicatio­ns during 2017-18.

He declined to disclose potential manufactur­ers’ names or the type of EVs, saying only that each maker may unveil its own production plan while applying for Board of Investment (BoI) privileges.

The BoI in March approved promotiona­l privileges for EVs, including tax holidays of five to eight years. The privileges focus on production of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs).

The promotions include passenger cars, pickups and buses, with different privileges based on production technology.

HEVs are entitled to a tariff exemption for imported machinery, while PHEV investment is eligible for a corporate income tax exemption for three years and import tariff exemptions on machinery.

PHEV investors who manufactur­e more than one key EV part will be entitled to an additional year of corporate income tax exemption per piece, but the combined tax exemptions cannot exceed six years.

BEV investment is entitled to five to eight years of corporate tax exemption.

BEV investors who make more than one key EV part will be entitled to another year of tax exemption per piece, but the combined exemption cannot exceed 10 years.

Mr Nattapol said HEVs and PHEVs will be highly likely to start production soon now that the Thai market is quite ready for the two products.

BEVs, however, still have limited sales volume, he said.

“Thailand’s automotive industry has to move forward on par with the global trend of EVs,” Mr Nattapol said. “New EV output is expected to hit 100,000 units per annum over the next five years, compared with the current volume below 10,000 cars.”

He said the EV’s promotiona­l privileges is a part of Thailand’s future roadmap to Thailand 4.0, the new economic model which is based on added values, high technology and innovation­s.

The automotive industry is one of the 10 targeted industries the government is ambitiousl­y promoting as clusters at the muchtouted Eastern Economic Corridor (EEC) which spans Chon Buri, Rayong and Chachoengs­ao provinces.

 ?? KITJA APICHONROJ­AREK ?? The government has attracted investment to make EVs in Thailand.
KITJA APICHONROJ­AREK The government has attracted investment to make EVs in Thailand.

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