BANGKOK — Thailand has approved incentives for joint ventures (JVs) between Thai and foreign companies to manufacture automotive parts for vehicles using all types of propulsion systems, its Board of Investment (BoI) said on Thursday.
Thailand is Southeast Asia’s biggest autos production center and an export base for some of the world’s top carmakers. The government is heavily promoting investments in electric vehicles (EVs) in particular, with incentives to lure major firms.
Both new projects and existing parts manufacturers that are already enjoying promotions but are transforming into a JV are eligible for two years of additional tax exemption, capped at eight years, provided they apply before the end of 2025, the BoI said.
To qualify, a new JV must invest at least 100 million baht ($2.82 million) in the manufacturing of auto parts and comprise a Thai and foreign company, with the local firm required to be at least 60 percent Thai-owned and provide a minimum 30 percent of the JV’s registered capital, it said.
On Wednesday, the BoI approved South Korean automaker Hyundai Motor Co.’s investment worth 1 billion baht ($28 million) to set up a facility to assemble EVs and batteries in Thailand.
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