Thailand, known for its thriving automotive industry, is pushing for greater innovation in its sector by offering tax breaks to automakers investing in automation and robotics. With the goal of boosting productivity, the country’s Board of Investment has approved a three-year tax incentive for companies that submit their investment applications by 2024.
In a bid to accelerate the development of the electric vehicle (EV) industry, Thailand has also announced a partnership with Toyota Motor Corp. The collaboration aims to leverage Thailand’s expertise in auto manufacturing, particularly in pick-up trucks and eco-cars. Prime Minister Srettha Thavisin expressed his enthusiasm for the potential of Thailand’s auto manufacturing sector, especially considering the rising popularity of EVs.
While Japanese companies like Toyota and Honda have long dominated Thailand’s automotive landscape, the emergence of Chinese competitors has prompted the country to adapt and evolve. Toyota, for instance, plans to introduce its first EV pick-up truck in Thailand as part of its strategy to increase EV sales. By tapping into the country’s booming market, Toyota hopes to gain an edge over Chinese rivals.
Thailand has set an ambitious target to convert one-third of its annual vehicle production, which currently stands at 2.5 million units, into EVs by 2030. To further incentivize innovation, the government has introduced a three-year tax break for automakers investing in automation and robotics. This move follows a reduction in consumer subsidies for EV purchases earlier this month.
With strong sales figures, Thailand has become a prominent player in Southeast Asia’s EV market. Chinese brands like BYD and Great Wall Motor have enjoyed significant success in the country, contributing to Thailand’s burgeoning industry.
Q: How long will the tax breaks be available?
A: Tax breaks for automakers investing in automation and robotics will be in effect for three years.
Q: When is the deadline to submit investment applications?
A: Investment applications must be submitted by 2024.
Q: What is Thailand’s goal for EV production by 2030?
A: Thailand aims to convert one-third of its annual vehicle production into EVs by 2030.
Q: Which brands currently dominate Thailand’s automotive industry?
A: Japanese brands like Toyota and Honda have historically dominated the sector in Thailand.
Q: What are some successful EV brands in Thailand?
A: Chinese brands, such as BYD and Great Wall Motor, have experienced significant sales success in Thailand’s EV market.