Having been successful as a global destination for pick-up truck and small car production, Thailand has been for some time now looking to jump start the development of a green car industry churning out hybrid, electric and hydrogen vehicles. Things are progressing, and now the Bangkok Post reports that a roadmap for EV industry is expected to surface this month.
According to the report, the Kingdom’s Board of Investment (BoI) will discuss plans for the development of EVs at a meeting led by Prime Minister Prayut Chan-o-cha on March 24.
Next-generation cars is one of 10 strategic industries Thailand is focusing on as it tries to shift to a high-tech, innovation-based economy. The others are smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.
Deputy PM Somkid Jatusripitak said the meeting will discuss details of five- and 10-year plans for the EV industry. “We will finalise a plan that will serve as a guideline for related industries, offering a timeline for our EV development plans,” he said.
The Thai government will have to set the ball rolling by dangling attractive carrots to carmakers, and the BoI’s incentive package is expected to include perks such as a 15-year corporate income tax holiday. If investors spend on R&D, they can ask for financial support from the government, which will set up a 10 billion baht competitiveness fund for the purpose.
The reason why carmakers haven’t been knocking on Thailand’s door to pour in EV investment is the lack of demand for such advanced cars. But Somkid is confident that this will change soon, predicting that demand for EVs will grow within the next five years because of fuel price fluctuation and the public’s concern for the environment.
“If car manufacturers do not act now regarding EVs, they will be left behind. Development of the segment takes time, and the faster the better,” he said, adding that BMW – which currently makes plug-in hybrids in Thailand – has expressed interest in building a battery facility in Thailand. Mercedes-Benz is also considering a PHEV battery factory there.
Separately, industry minister Uttama Savanayana told the Federation of Thai Industries (FTI) that the government will soon announce a new investment package to support investment in EVs. “The government plans to set up talks with the FTI in April to announce government policies and support to be given to the private sector to encourage them to start real investment, especially in EV cars,” he said.
Thailand has set up the Eastern Economic Corridor (EEC) as a special location to accommodate investment in the 10 targeted industries. The EEC is a 4,800 hectare zone spanning across Chon Buri, Rayong and Chachoengsao provinces. Investors in the targeted fields enjoy the highest privileges if they set up shop in the EEC. Thailand is also reducing personal income tax for researchers to 17%, which is low for the region.
Instead of resting on its car production laurels, the “Detroit of the East” is laying the groundwork for the future. Malaysia also has incentives for car companies to produce hybrids and PHEVs, but the privileges depends on direct negotiation with the government. In contrast, Thailand’s automotive blueprints and requirements are clearly defined. While transparent, it’s rigid, and Malaysia’s package has been praised by some for its flexibility.
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Inb4 M’ia super proud of importing TESLA.
beribu ribu tahniah
What is perMaidani & geng doing at work?!
https://paultan.org/2014/01/20/nap-2014-open-ap/
1M government has started similar initiative years ago but most of the policies still protecting the local brands, flip-flopped policies and obviously not aggressive to become EV hub of Asia.
Now Thailand has a very clear direction to grow and bring their automotive sector into next level, I wish them all the best. Malaysia is not a threat anymore.
Yes, even Paultan had published articles about Malaysia wanted to be THE hub for EV in ASEAN countries. Tapi sekadar cakap saje… Thailand has actually taken the initiative after realizing that EV is the future of automobile.
The cost of inaction is far Greater than the cost of making a Mitsake.
Soon Thai people will be coming over to Malaysia for a vacation instead.
Or rephrase that to : Soon Malaysians have to leave their families and work abroad in countries like Thai and Indon
Sadly we already did, and mostly in senior technical and management position
“Thailand’s 10 strategic industries Thailand is focusing on as it tries to shift to a high-tech, innovation-based economy. The others are smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.”
Malaysia still tidur and shok sendiri? Wake up la. Malaysia exports very few cars. Soon to be irrelevant from global perspective
“Malaysia also has incentives for car companies to produce hybrids and PHEVs, but the privileges depends on direct negotiation with the government.” Herein, lies the Malaysian malady – “Direct Negotiation” that give rise to favouritism and the “what’s in it for me?” culture.
I don’t know if Paul Tan’s got this part correct: “While transparent, it’s rigid, and Malaysia’s package has been praised by some for its flexibility.” In my opinion, if it’s rigid, then there’s no ground for flexibility. Unless oft-used word “dedak” comes into the picture.
Thailand plan is transparent but rigid, Malaysia plan is flexible because it depends on how much under counter money is negotiated
EEV was expected to change the local automotive landscape towards becoming a regional hub in Asean. The current NAP roadmap is only for up to 2030, and we came up with a new roadmap that would be inclusive for the automotive sector until 2050.
Probably to optimistic. I can tell you Malaysia would become a developed country by 2020 when the median income, HDI, corruption perception index, and GINI coefficient don’t match up
EV are only part of the solution. The others is solar panels and some form of local battery storage. Those are 3 different but absolutely related technologies that apply to EVs but also to other household applications. Think far!
“Malaysia’s package has been praised by some for its flexibility.” Danny Tan :) u are so cute :) I like your wordings :)