14 January 2022
Thailand’s Board of Investment (BOI) recently published BOI Notification No. Sor. 8/2564, which extends the scope of investment promotion covering electronic vehicle (EV) industry manufacturers to include the production of “automotive platforms” for electric vehicles, and creates a new category of BOI promoted activities covering the manufacture of electric bicycles (E-bikes).
Automotive Platforms
The following investment promotion categories have been extended:
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4.24 – Manufacture of Battery Electric Vehicles
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4.26 – Manufacture of Electric Battery Tricycles
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4.27 – Manufacture of Electric Battery Busses and Trucks
These categories now include the manufacture of “automotive platforms”—which must include an energy storage system, charging module, and front and rear axle module—benefiting from similar tax incentives and subject to additional conditions, as detailed below.
Please click on the image to enlarge.
New BOI Promotional Category for E-Bike Production
The BOI has also introduced a new category, No. 4.28, covering the manufacture of E-bikes. Projects under this category will be eligible for a three-year CIT exemption with an additional one-year exemption if certain criteria are met.
Applications for this category must cover the manufacture of E-bikes, the manufacture or sourcing of electric batteries, and a management plan for used batteries.
In addition to the general conditions for EV projects (industrial standards, manufacturing timelines, etc.), the BOI has also imposed the following conditions specific to E-bike projects:
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E-bike frames must be produced from light-weight materials such as aluminum alloy, chromium–molybdenum alloy steel (chrome moly), titanium alloy, and carbon fiber; and
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E-bike batteries must adopt environmentally-friendly technology.
Interestingly the BOI allows E-bike production lines to jointly use manufacturing lines for ordinary bicycles. However, the sale of ordinary bicycles is regarded as non-BOI-promoted income and will not be entitled to BOI tax incentives.
These new provisions, intended to stimulate both local and foreign investments in the electric automotive industry, seem to complete the BOI promotion scheme for the full range of electric vehicles. They will hopefully accelerate the expansion of Thailand’s electric vehicle production market, and the adoption of environmentally friendly vehicle technology in Thailand.
For further information, please contact:
Supasit Saypan, Tilleke & Gibbins
supasit.s@tilleke.com
