Late last month, Thailand’s Board of Investment (BoI) approved promotional privileges for manufacturers of green cars including hybrids, plug-in hybrids (PHEVs) and full electric vehicles (EVs). The carrot includes tax holidays of five to eight years, with the intention to make the “Detroit of the East” – big in pick-up truck and small car production – a hub for future green cars.
Passenger cars, pick-up trucks and buses are eligible, with different levels of privilege dished out according to the level of technology, Bangkok Post reports.
Makers of hybrids are entitled to a tariff exemption for imported machinery, while PHEV investment is eligible for a corporate income tax exemption for three years and import tariff exemptions on machinery. PHEV investors who manufacture more than one key EV part will be entitled to an additional year of corporate income tax exemption per piece, but the combined tax exemptions cannot exceed six years.
Meanwhile, EV investment is entitled to five to eight years of corporate tax waivers. EV investors who manufacture more than one key EV part will be entitled to another year of corporate income tax exemption per piece, but the combined tax exemption cannot be over 10 years. Electric-powered buses will be entitled to tariff exemptions for imported machinery and a three-year corporate tax waiver. More EV parts, more years of tax exemption, as long as it doesn’t exceed six years.
The 10 important EV components that come with corporate income tax exemption are batteries, traction motors, battery management services, DC/DC converters, inverters, portable electric vehicle chargers, electrical circuit breakers and EV smart charging systems.
The demand part of the equation is equally as important, if not more, and the Thai government is slashing excise tax for CBU imported green cars to boost domestic demand, which is similar in principle to what Malaysia did for CBU hybrids and EVs a few years ago.
That window, which ended in 2013, saw carmakers take advantage of the tax breaks to offer good value CBU hybrids such as the Toyota Prius, Prius c, Lexus CT200h, Honda Insight, CR-Z, Civic Hybrid and Audi A6 Hybrid, among other models. The Nissan Leaf and Mitsubishi i-MiEV electric cars were also introduced in Malaysia.
Thailand’s temporary two-year plan will see excise tax for CBU hybrids and PHEVs that emit less than 100 g/km of CO2 cut to 5% from 10%, while EVs will attract an excise tax of just 2%. Hybrids and PHEVs with 101-150, 151-200 and over 200 g/km of CO2 emissions will have new excise taxes rates of 10%, 12.5% and 15%, from 20%, 25% and 30% respectively.
Carmakers are taking the news positively. Piengjai Kaewsuwan, VP of Nissan Motor Thailand, said the newly-announced privileges given to makers of EVs are enticing when one factors in benefits such as zero tariffs for CBU imported EVs and an excise tax reduction to stimulate domestic demand.
“The BoI packages for EVs are highly likely to attract new investment, particularly in electric batteries and motor manufacturing locally, as all of these projects are related to EVs and carmakers are now interested in making Thailand their production base,” she said. Nissan, maker of the Leaf, was one of the earliest proponent of EVs.
Thai market leader and hybrid champion Toyota is ready to produce hybrids in Thailand, and will announce its investment plan in the next 12 months, according to Toyota Motor Thailand vice chairman Ninnart Chaitharapinyo.
“Toyota is looking forward to exporting hybrids from Thailand in the future. Toyota’s EV production plan will focus largely on hybrids, as PHEVs and EVs require higher technology,” he said, adding that Toyota is also conducting a feasibility study to establish its own (nickel-metal hydride, NiMH) battery manufacturing facility in the kingdom.
Morikazu Chokki, president and CEO of Mitsubishi Motors Thailand, said his company is also keen on the EV scheme, but the headquarters in Japan will first need to consider and consult with its suppliers before making a decision in 2018. He added that PHEVs seem like the best fit for Thailand now, which lack EV infrastructure such as charging stations.
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Meanwhile, waiting for cancellation of Honda City Hybrid facelift launching announcement.
MAI and gang should send themselves to Thailand for training instead of luxurious holidays to Europe. Thailand is the best example to follow. They are so focused. The have no tongkat policy. They have no nonsense.
Most importantly, their vendors are no cronies. Here in Malaysia, vendors and suppliers are all political cronies. So, all car policies must be in accordance to benefit these cronies.
AP is also another good example. Please MAI, please learn from our Thai people how to run a car industry
YES! Better all work and jobs got to tomyam cuz bashers says MY work all no quality wan. MY pipu half past 6 quality alwiz nasi lemak teh tarik, according to bashers.
tahu pun!
Memang tau. Tengok keje bashers sini pun tak laku. Kena hentam 500kali baru dapat seringgit.
Still sweeping things under the carpet. Cannot accept or admit failures to rectify and better yourself.
Malaysia focus is not on cars. It is on having separate waiting room in public hospitals for male and female.
Only country in the world where got separate waiting rooms (for operation) for families to wait
The excise.duty_tax % charged on every car purchase in bolehland is a top secret, the promised 30% car price reduction after EEV incentives tax break have been cheating 30millions msian; today 2017 H.City@90k, H.Civic@135k still same with 2005 selling price. Hollywood Drama from mai.maa.trade-m & car makers keep blaming each others for the car price not dropping, making msiam suffering paying super luxury price for a daily basic need *transportation. Pity 30 millions msian being victimized under mai.maa.trade-m & car makers Hollywood drama.
Last time Toyota and Honda already did CKD hybrid in Malaysia cause they listened to MAI who said if they spent billions setting up CKD Hybrid plants in Malaysia, government will continue to give the tax rebate.
So Honda and Toyota like fools believe. They spent billions
Then one day Malaysian Government pull the plug on the tax rebate for hybrids.
Now all go to Thailand cause Thailand is not a lalang government
Malaysia’s hybrid and PHEV package has been praised for its flexibility. Good job!
Today Tesla market value overtook Ford. At close of Trading, Tesla had market value of USD49 billion compared to Ford’s value of USD46 billion.
Tesla is much younger than Proton. See how Tesla has progressed. The world is moving towards Hybrid, EV and PHEV.
And even until today, our Proton, don’t even have EV, PHEV or even the older technology of plain hybrid.
Obviously you don’t read
In the 80s, we were the Detroit of Asia. But our gomen told all car companies that
1) MITI will decide on any prices.
2) You must give 30% of your local entity FREE
3) Your chairman also MITI will decide who it will be.
4) Though you are Japanese brand, you must take all your parts from our panel of vendors and suppliers
All Japanese car companies as well as European makes just ran away. They ran so fast. Like Speedy Gonzales.
MAI got this right !!
https://paultan.org/2017/03/27/all-new-models-sold-in-malaysia-to-be-eevs-by-2025-mai/
long live tongkat policy….ha ha ha chairman also must be tongkat. free money, goyang kaki, do nothing. Sit AGM also eat karipap and sirap bandung
Then you work hard lor
Wow…this is a good reason for all Malaysians to migrate to thailand…wow oh wow…kahkahkah
Hujan Emas Di Negeri Orang, Hujan Batu Di Negeri Sendiri. Lebih Baik Negeri Sendiri, Malaysia Tercinta
Proton migrate to Thailand so no problemo.
MAI pls close shop. All tok kok only. No action. Till today MAI cannot even sort AP problem
Yeah cant wait for proton to close shop…so that we can buy other cars at a very very cheap price…merz, bmw, audi can buy from 50k onwards, toyota, honda, nissan from 10k onwards…imagine camry is just 25k only…wah…so good…it shows we are the cheapest in ASEAN…kahkahkah…
Dream on…even in Thai no such price
Malaysia green car policy is dead….
Malaysia promote green car means breaking own rice bowl. Less demand for petroleum = oil price down
Well done.
Cukurr Asean AFTA gip M’sia kreta murah.
Another good move by Thailand to sustain the automotive industry continuous growth. They understood (20 years ago) that the country can’t sustain a home grown brand, so next best thing is to encourage investment from other automotive manufacturers. Today they have the foresight to sustain the continued growth of SEA LARGEST & world 12th largest automotive industry, with an annual output of nearly 2 Million vehicles. Meanwhile, back in Boleh-Land, protectionism of cronies, AP holders & even petrol dealers will be a never ending affair. Is it any wonder why this country doesn’t progress, but continue to happily live under the protected coconut shell. Syukur Malaysia Aman.
Indahnya Thailand tiada BN.
Malaysia, truly Asia
Thai tak best byk pondana
Hanya negara yang tamak, bodoh, and tak kisah dengan environment yang tarik balik the tax relief! Bravo kerajaan M’sia!
Meanwhile in Malaysia, the national car company is still undecided on which international car company they wish to partner with. Perhaps never!!!! We have clowns running the country to the ground.
I’m afraid you gave comment like a clown show while noone watchin
@f-don,
I wonder who is the bigger clown. You for want don’t understand the dynamics of or economy and how this country is run by a bunch of clowns. Perhaps your are one of them. It is about policies that create economic growth and wealth for the nation at a sustainable level. Go eat that you parasite.