The incentives announced by the Thai government in March to promote electric vehicles has been met with enthusiasm by Honda – describing the packages as alluring, the Japanese automaker said that it is interested in the promotional privileges for EVs, The Bangkok Post reports.

Aimed at encouraging leading automakers to localise EV production and turn the country into an EV production hub, the packages are open not only to hybrid electric vehicles (HEVs), but also plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs).

“We earlier proposed to the government that it should offer promotional privileges on HEVs and PHEVs before expanding into BEVs, and the government’s incentives coincide with our proposals,” said Honda Thailand COO Pitak Pruittisarikorn.

In March, the country’s Board of Investment (BoI) approved a set of promotional privileges for EVs, focusing on local production of HEVs, PHEVs and BEVs. The scheme covers passenger cars, pickup trucks and buses, with different rates of privileges based on production technology. There is also tax relief.

According to the report, investment in BEV production will entitle a company to five to eight years of corporate tax exemption, and BEV investors who manufacture more than one key EV component will be entitled to another year of corporate income tax exemption per piece. However, there is a cap to the duration, for the combined tax exemption will not be able to exceed 10 years.

The duration of the relief is slightly less for PHEV investment. That will be eligible for a corporate tax exemption for three years, though there will be import tariff exemptions on machinery. Like that for BEVs, investors who manufacture more than one key PHEV part will be entitled to an additional year of corporate income tax exemption per piece, with the maximum relief being six years.

As for HEVs, manufacturers wil be entitled to a import tariff exemption for relevant machinery. Battery electric buses, meanwhile, will be entitled to tariff exemptions for imported machinery and a three-year corporate tax exemption. The relief for the manufacturing of a key component for this – and the maximum duration of relief – is identical to that for PHEVs.

It was also announced that 10 important EV parts will enjoy corporate income tax exemption for eight years. The items are batteries, traction motors, battery management services, EV smart charging systems, DC/DC converters, inverters, portable electric vehicle chargers and electrical circuit breakers.