Thailand’s Board of Investment (BOI) recently issued BOI Announcement No. Sor. 8/2564, which extends the scope of investment support for manufacturers of electric vehicles (EV) to the production of “automotive platforms” for electric vehicles and a new category of BOI-funded activities for the production of electric bicycles (e-bikes).
The following categories of investment support have been expanded:
- 4.24 – Manufacture of battery electric vehicles
- 4.26 – Manufacture of electric battery tricycles
- 4.27 – Manufacture of electric battery buses and trucks
These categories now include the manufacture of “automotive platforms” – which must include an energy storage system, a charging module, and a front and rear axle module – that benefit from similar tax incentives and meet additional conditions as described below.
New BOI advertising category for e-bike production
The BOI has also introduced a new category, No. 4.28, which includes the manufacture of e-bikes. Projects in this category are eligible for a three-year CIT exemption, with an additional one-year exemption if certain criteria are met.
Applications for this category must include the manufacture of e-bikes, the manufacture or procurement of electric batteries, and a management plan for used batteries.
In addition to the framework conditions for EV projects (industry standards, production schedules, etc.), the BOI has also imposed the following specific conditions for e-bike projects:
- E-bike frames must be made of lightweight materials such as aluminum alloy, chrome-molybdenum steel (chrome-molybdenum), titanium alloy, and carbon fiber; and
- E-bike batteries have to adopt environmentally friendly technologies.
Interestingly, the BOI allows the e-bike production lines to share production lines for ordinary bicycles. However, the sale of ordinary bicycles is considered non-BOI income and is not eligible for BOI tax breaks.
These new regulations, designed to encourage both local and foreign investment in the electric automotive industry, appear to complete the BOI funding program for the full range of electric vehicles. Hopefully they will accelerate the expansion of the Thai electric vehicle production market and the introduction of green vehicle technology in Thailand.