Thailand is rolling out new incentives to boost joint venture (JV) investments between Thai and foreign companies in automotive parts manufacturing. The Thailand Board of Investment (BOI) hopes these measures will reinforce the country’s position as a global leader in automotive production and adapt to the changing demands of the industry.
The new incentives target parts for internal combustion engines, hybrids, and electric vehicles. To qualify, a joint venture must invest a minimum of 100 million baht (about $4.3 million). The partnership must involve a Thai company holding at least 30 per cent of the registered capital. The Thai partner must also have been established for at least three years and be at least 60 per cent Thai-owned.
Under these criteria, existing manufacturers that transition to joint ventures can benefit from an extra two years of tax exemption. However, their total tax exemption period cannot exceed eight years. Companies must apply for these incentives by the end of 2025.
Driving Technology and Competitiveness
The incentives aim to drive technological advancements and strengthen Thailand’s role in the global automotive market. The country seeks to enhance its manufacturing capabilities by encouraging international partnerships and ensuring local businesses can compete effectively.
“Opening up more business opportunities for joint ventures will lead to technology transfer, enhance personnel development, and increase the use of local raw materials. This will make Thai automotive parts manufacturers more competitive and help them integrate into the global supply chain,” said BOI Secretary General Narit Therdsteerasukdi.
This initiative marks a significant move to attract high-value investments and foster innovation in Thailand’s automotive sector. Both local and international businesses are expected to take advantage of these new opportunities.
Did you find this article interesting? Click the ‘heart’ button above to give it a ‘like’!
