BOI unveils news measures to support auto industry
The Board of Investment (BOI) has introduced new measures to support automobile manufacturers utilising automotive production technology.
These measures provide additional benefits and will be showcased in Japan with the Prime Minister in December this year, aiming to attract more investors.
Today (November 9), at the Government House, the Board of Investment (BOI) Secretary-General Narit Therdsteerasukdi, held a meeting with the Board of Investment (BOI) Committee, chaired by Deputy Prime Minister/Foreign Minister Panpree Bahiddha-Nukara. They approved investment promotion measures to enhance the automotive industry by supporting manufacturers in adopting automation and robotics systems to improve efficiency in both internal combustion engine and plug-in hybrid vehicle production. These measures cover existing and new investments to enhance production efficiency and support the transition to a modern technology-driven automotive industry.
Under these measures, companies investing in automation and robotics systems will be exempted from corporate income tax for 3 years, up to 50% of the investment amount. Additionally, projects using automated machinery systems domestically, with a minimum of 30% local content, will receive a 100% corporate income tax exemption for the investment in these systems. Applications for these incentives must be submitted within 2024.
Narit stated that these new measures, along with the benefits for automobile manufacturers, will be used by the BOI to attract investors, especially during the Prime Minister's visit to Japan in December 2022.
"There are several measures for showcasing, such as the EV 3.5 promotion measure, which aims to enhance the automotive industry. The new measures introduced this time will further boost the entire automotive industry by upgrading and integrating new technologies," Narit said.
The automotive industry is a significant sector crucial to driving the country's economy, contributing to exports, employment, and a large number of manufacturers in the automotive supply chain, with over 2,300 entities. In 2022, Thailand produced approximately 1.9 million vehicles, making it the largest automotive production base in ASEAN and ranked 10th globally.
Currently, the Thai automotive industry is entering a crucial period of transformation, requiring significant adjustments by manufacturers to embrace new technologies. These upgraded measures will enhance the potential of entrepreneurs to compete and navigate through the technological changes with stability.
The automotive and parts industry is a vital sector supporting Thailand's economic growth, ranking as the top export product. In the first 9 months of this year (January - September), the total export value amounted to 1.02 trillion baht, expanding by 8.2% compared to the same period last year, constituting 14% of the total export value.
This industry provides employment for approximately 900,000 people, with more than 2,300 manufacturers involved in the supply chain. There are over 20 automobile manufacturers, 530 Tier 1 parts manufacturers, and numerous Tier 2 and Tier 3 parts manufacturers, mainly SMEs, totaling approximately 1,750 entities.
