Thailand will introduce investment incentives for manufacturers of hybrid vehicles, the Board of Investment (BOI) says.
Excise taxes will be lowered for five years, from 2028 to 2032, for hybrid vehicles makers that invest at least 3 billion baht in the next four years and include local parts.
Vehicles will also need to have advanced driver-assistance systems to qualify.
Thailand has for decades been a regional center for auto production and an export base for some of the world’s top carmakers, including Toyota and Honda.
Recent investments from Chinese electric vehicle makers like BYD (Build Your Dreams) and Great Wall Motor has shaken up the industry and Thailand has been active in offering incentives to court more firms.
“Thailand has the capacity to be a key producer of hybrid vehicles – and supporting hybrid production will preserve auto parts manufacturing,” BOI secretary-general Narit Therdsteerasukdi says. He believes the measures are will draw in 50 billion baht (1.39 billion USD) worth of investments.
Seven automakers are currently receiving benefits from incentives offered by the BOI. Four of those are from Japan and three from China.
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