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.
Looking to sell your car? Sell it with Carro.
GG MAI..
Honda under DRB hicom assembling Jazz, accord hybrid.
Hello MAA, Aishah, Mustapha & Co. How many cars are we exporting? What is ratio of domestic and export cars? Why do car makers to Thailand, Indonesia and soon Vietnam?
Meanwhile MAI Madani believes Malaysia’s EEV policy still “better” than Thailand’s
what about the incentives given by our government? not good enough? sad……
Inb4 tenkiu TDM bapak otomobil Thailand blabla salah Proton blablaba Malaysia used to be Detroit of Asia blablablaaa $10billion FDI gone..
In the 80s, Malaysia was the Detroit of Asia. Everybody wanted to CKD in Malaysia.
But because of ketuanan issues, all car companies ran to Thailand from 2000 onwards.
Today, Thailand is the Detroit of Asia. The past 20 years they have benefitted about few hundred BILLION in investments (Trillions in RM)
On top of that, the car industry has given Thailand few hundred thousand jobs.
Now, another sweep is happening. Thiland has prepared itself for Hybrid, EV and PHEV development. So, ALL car companies are wanting to invest in Thailand.
Infact Tesla even is opening the largest battery factory in the world in Thailand.
Where is Malaysia heading? We don’t even have Hybrid, which is 10 year old technology. Don’t even talk about PHEV and EV.
Congratulations Kingdom of Thailand. May you reap the rewards you’ve sow.
syabas siam yang hebat
Mean while…..
What model is it on the main pic? Looks like BMW tail lights
2015 us honda civic hybrid
The government must do something so that we do not lose out again to be the hub for HEVs PHEVs and BEVs. Please wake up government officials
Other countries are going the distance to offer tax exemptions to attract investors. Here we are offering GST…and we wonder why people choose our neighbors instead of us.
bolehland still protecting p1 and losing big foreign investment…
The Thai government are more flexible and accommodating. Their labour force also productive.
P1 should take advantage n manufacture in Thailand for their EV. Cos no ones buying P1 in Malaysia. The irony.
What say u? MAI and MITI??
That’s how to attract foreign investments done right.
Meanwhile our gomen officials are still having roti canai and teh tarik for breakfast. All talk
Krasher