Auto manufacturers and investors in Thailand can benefit immensely from the country’s free trade agreements (FTAs). Some of the benefits available to automobile investors in the EEC include corporate income tax exemption up to 15 years; financial incentives for investment in R&D, innovation or human resources development; permit to own land used for BOI promoted projects; and facilitation of foreign workers’ visas and work permits. In 2016, the Thai government created a roadmap for the general popularization of electric vehicles (EVs) and approved a tax incentive scheme for EV production in the country. It now produces four EV models. The relief for the manufacturing of a key component for HEV – and the maximum duration of relief – is identical to that for PHEVs. The Ministry of Finance is offering three-year exemptions on import duties of foreign auto parts used to make vehicles E85-ready (85 percent ethanol, 15 percent gasoline). Some people look at the prices of electric scooters and say they are expensive. To boost the component industry, the Thai government has recognized 10 components eligible for eight-year CIT holidays. Complete dealer information is available readily. That's just phase one of the program. For other cards, please check out our Lazada shop and you will be able to pay via 0% installment plans. By 2036, Thailand aims to boost the number of electric cars to 1.2 million and have 690 charging stations operating across the country. businesses establish, maintain,
). BMW began PHEV assembly in 2016. The firm assists foreign investors throughout Asia and maintains offices throughout ASEAN, including in Singapore, Hanoi, Ho Chi Minh City and Jakarta. We promise we won't send you spam. Mon - Fri 9.00 - 17.00; 374 ถ.พระราม4 แขวงมหาพฤตฐาราม เขตบางรัก 10120 022362020 According to the Federation of Thai Industries (FTI), the Thai automotive industry is poised for moderate growth in 2018. Some of the general benefits available to foreign investors include the following. At present, Thailand has six FTAs with Australia, China, India, New Zealand, and the 10 member states of ASEAN. Thailand’s Board of Investment (BOI) offers generous tax incentives to both auto manufacturing and auto parts industry in the country. Supporting this vision is the Eastern Economic Corridor (EEC) initiative that places a great importance on bringing next-generation automotive industry to Thailand, in particular, the electronic vehicle (EV) industry. Given the world’s tightening emission standards, Thailand is keen to expand its automotive manufacturing industry to produce green vehicles. including the most recent legal, tax and accounting changes that affect your business. The tax rates for hybrids and PHEVs have been reduced, depending on their emission levels. Suitable for fast charging and costing between $68,000 and $74,000. Cost of transport in Thailand – Car vs Motorbike vs E-scooter. Cost of transport in Thailand – Car vs Motorbike vs E-scooter Some people look at the prices of electric scooters and say they are expensive. The Ministry has also reduced the excise tax on cars using E85 to 22, 27 and 32 percent, depending on engine size. The Thai automotive market is dominated by Japanese automakers that have established Thailand as the production base of one-ton pick-up trucks and eco cars for exports. This initiative includes the introduction of over 10,000 natural gas-powered taxicabs, natural gas subsidization, a reduced import duty on NGV tanks from 17 percent to 10 percent, and a reduced import duty on NGV control system parts and components from 35 to 10 percent. Thailand offers great investment potential as a leading automotive production base in the Association of Southeast Asian Nations (ASEAN) – a fast developing region for automotive manufacturing. Our subscription service offers regular regulatory updates,
Located in the three eastern provinces of Chonburi, Rayong, and Chachoengsao, the EEC framework is designed to support 10 target industries, including automobile, to promote emerging technology, innovation, and creativity within each sector through government policies and investment. The maximum tax rate for electrified cars is 12.5 percent for vehicles emitting less than 200 g/km, down from 25 percent. In this issue of ASEAN Briefing magazine, we analyze the various market entry options available for investors ... Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. Notify me of follow-up comments by email. The country has an established presence of virtually all of the world’s leading automakers, assemblers and component manufacturers. The Thai automobile and auto parts industry accounts for nearly 12 percent of Thailand’s economic growth and employs more than 500,000 people. Thailand: How to choose an electric scooter that suits you? ASEAN Briefing is produced by Dezan Shira & Associates. But what these... For riders thinking about getting an entry level electric scooter, the Ninebot by Segway ES2 and the ZERO 8 will unavoidably come up as potential choices. BMW began PHEV assembly in 2016. Both are in the same price range, but they have very different features. As of Sept 30, Thailand had 52 electric sedans on the road, but the government has launched a plan to boost the number of electric vehicles to 1.2 million in the next two decades. Board of Investment’s (BOIs) investment promotion scheme. Further, it plans to expand and enhance the manufacturing process of electronic accessories and automotive parts. Beyond that, three more phases will be implemented with various measures such as incentives, funds for battery research and local development of electric cars and so on. With shipments bound for more than 100 countries, Thailand is the 13th largest automotive parts exporter and the sixth largest commercial vehicle manufacturer in the world, and the largest in ASEAN. Bangkok Post reports that Thailand had only 52 battery electric vehicles registered nationwide as of September 30, 2016. Manufacture of key components, like for BEVs, will be eligible for an additional year of CIT relief per component, with a maximum of six years. The Kobra seated electric scooter is the ideal long-range commuting scooter. Post was not sent - check your email addresses! ASEAN’s Free Trade Agreements: An Overview, Thailand’s Special Economic Zones – Opportunities for Investment, Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Pinterest (Opens in new window), Click to email this to a friend (Opens in new window). Toyota increased its Thai market share in 2019 to 33%, a 2.8% increase. In Thailand, there are three HEV models that have been locally assembled in since 2009: the Toyota Camry, Nissan X-Trail, and Honda Accord. Vera. Companies such as Toyota, Isuzu, Honda, Mitsubishi, Nissan, and BMW together account for a lion’s share of the approximately two million vehicles produced in the country each year. In this issue of ASEAN Briefing magazine, we discuss both the continuity and change in ASEAN’s tax landscape... Dezan Shira & Associates helps
Apart from this we also provide great deals on new car loans and insurance. With the end of the first-time buyer scheme, the number of out-of-warranty passenger vehicles in Thailand is expected to exceed 14 million units by 2020, with more than five million units between the age of three and eight years – offering tremendous opportunities for auto manufacturers in the country. Unfortunately, that’s quite unavoidable due to the high import tax on e-scooters in Thailand (praying the government will do something about this soon! Your email address will not be published. 5,000 imported EVs per years will receive full tax exemption, says the Kasikorn Research Centre (via the Bangkok Post): "...the tax exemption will make the BEV price (not include marketing cost) 15-85% higher than fuel cars; without the measure they would be 65-260% more expensive.". Thailand Announces Grand Plans To Get Electric Cars On Its Roads, https://insideevs.com/news/329636/thailand-announces-grand-plans-to-get-electric-cars-on-its-roads/, Tesla Owner: What An Honest Model Y Vs Model 3 Review Should Look Like, GMC Reveals 350-Mile Hummer Electric Pickup Truck: $79,995 To $112,595, Tesla Model Y Efficiency Proves Better Than Model 3 In Winter Testing, Tesla Model S Performance Loses To Ferrari F8 Tributo In Drag Race, Chevrolet Bolt EV Reportedly Catches Fire While Parked In Driveway. Save my name, email, and website in this browser for the next time I comment. These include reduced CIT – 50 percent of the normal rate – for five years, in addition to the tax-exempt period of up to 8 years under the general BOI promotion scheme; possibility to extend to 10-15 year CIT exemption; personal income tax for specialists both Thai and Foreign; and possibility to get a permanent residence permit. Investments in HEV are entitled to an import tariff exemption for relevant machinery. Manufacturers of PHEV are eligible for slightly less generous incentives, with three- year corporate tax exemptions as well as import tariff exemptions on machinery. There are currently 19 major auto manufacturers in Thailand, … Powerful, st... We offer 0% interest installment plans for Kasikorn Bank and Bangkok Bank credit cards at our retail shop. But there is a strong tilt to electric cars as a future for Thailand’s massive auto industry. Corporate Income Tax (CIT) exemption for up to eight years; Import duty exemption on raw materials used in manufacturing export products; Permit to bring skilled workers and experts to work in investment promoted activities; Permit to take out or remit money in foreign currency. In Thailand, there are three HEV models that have been locally assembled in since 2009: the Toyota Camry, Nissan X-Trail, and Honda Accord. To help spur the industry, the Thai government is actively promoting and attracting foreign manufacturers to use Thailand as a base for the production of green vehicles in the region. Internationally, the number of electric vehicles (EVs) is projected to rise to 35 percent of all vehicles by 2040.