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Update on BOI Promotional Measures Related to EV Businesses (Thailand)

NO&T Asia Legal Review

Chattong Sunthorn-opas, Pundaree Tanapathong (Co-author)
Nagashima Ohno & Tsunematsu
Journal /
NO&T Asia Legal Review No80 (April, 2024)
Practice Areas
*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Thailand has a large automobile industry which significantly contributes to its economy.※1 To keep up with advancements in technology and ensure that Thailand’s automobile industry remains competitive globally, the Thai government, through the relevant governmental agencies (e.g., the Excise Department, Customs Department, Ministry of Industrial Works, Ministry of Energy and the Board of Investment Promotion (“BOI”)) has implemented several support measures in recent years to promote the automobile industry, with a particular emphasis on electric vehicles (EVs). Notably, the BOI has provided investment promotion for 103 EV projects, amounting to an investment value of THB 77,192 million as of the end of 2023.※2 Promotional measures which have recently been implemented or are planned to be implemented by the BOI relating to EV businesses are summarized below.

1. Investment Promotion Measures to Enhance the Automobile Industry※3

On 9 November 2023, the BOI Committee approved an incentives package aimed at bolstering the domestic automobile industry and encouraging automobile business operators to use automation and robotics systems to improve production efficiency. Applicants eligible for this incentives package must engage in activities which fall under one of the following categories of BOI promoted businesses:

  1. Category 3.6: Manufacture of general automobile; or
  2. Category 3.8: Manufacture of battery electric vehicles (BEV), Plug-In hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV), and BEV platforms (only Plug-in Hybrid Electric Vehicle (PHEV and Hybrid Electric Vehicle (HEV))).

Existing projects which have already received BOI promotion as well as new projects may apply for this incentives package. Details of the incentives package are outlined as follows:

i. Material conditions

  • the project’s investment value must be over THB 1,000,000, excluding cost of land and working capital. The method for calculating the investment value may vary based on the type of machinery, equipment and software used in the manufacturing process;
  • the applicant must propose a plan for investment in automation systems or robotics to support the project’s manufacturing process according to the criteria prescribed by the BOI;
  • the applicant must propose an automotive product development plan that utilizes technologies aimed at cleanliness, energy efficiency, safety, intelligent driving, or other appropriate technologies; and
  • the applicant must submit the application within the last business day of 2024 and must complete the project within 3 years from the date on which the BOI certificate is obtained.

ii. Tax incentives

  • the project will be entitled to exemption on import duties for machinery;
  • the project will be entitled to a 3-year corporate income tax exemption for the proportion of 50% of the investment capital for automation and robotics, excluding cost of land and working capital;
  • in the case of a new project, if such project uses machinery which connects or supports the domestic automated machinery manufacturing industry in the amount of not less than 30% of the value of machinery which is changed or the value of all machinery, the project will be entitled to a 3-year corporate income tax exemption for the proportion of 100% of the investment capital for automation and robotics, excluding cost of land and working capital; and
  • existing BOI-promoted projects will be entitled to a corporate income tax exemption on revenue of the existing project. The period of exemption will start from the date revenue is derived after the BOI certificate is issued.

2. Investment Promotion Measure for the Manufacture of Battery Cells for EVs and ESS under the Competitiveness Enhancement Act

On 21 February 2024, Thailand’s National Electric Vehicle Policy Committee (EV Board) approved investment promotion measures to be granted under the National Competitiveness Enhancement for Targeted Industries Act of 2017 (the “Competitive Enhancement Act”) to attract investment from manufacturers of battery cells for EVs and energy storage systems (ESS). Details of the contemplated promotion measures disclosed in the official press release of the BOI※4 can be summarized as follows:

i. Material Conditions

  • the applicant must be a leading battery manufacturer which supplies batteries to EV manufacturers;
  • the applicant must have a plan to manufacture EV battery cells and may also manufacture ESS battery cells;
  • the applicant must manufacture battery cells with energy density of not less than 150 Wh/kg;
  • the applicant must manufacture batteries which have a life cycle of not less than 1,000 cycles, counting from 70% of the nominal capacity at a depth of discharge of not less than 80% at a test temperature of 20-25 degrees Celsius; and
  • the applicant must submit the application by the end of 2027.

ii. Incentives

The applicant will be granted financial support from the Competitiveness Enhancement Fund and may receive other incentives under the Competitive Enhancement Act.

Details of the measures are expected to be announced by the Commission on the National Competitiveness Enhancement for Targeted Industries Policies within the end of April 2024.


According to BOI Press Release No. 20/2567 (Or.7) dated 21 February 2024, Thailand is the largest automobile manufacturer within the Association of Southeast Asian Nations (ASEAN) and the 10th largest automobile manufacturer in the world.

BOI Press Release No. 19/2567 (Or.6) dated 21 February 2024

BOI Announcement No. 2/2566 re: Investment Promotion Measures to Enhance the Automobile Industry dated 12 December 2023

BOI Press Release No. 19/2567 (Or.6) and BOI Press Release No. 20/2567 (Or.7) dated 21 February 2024

This newsletter is given as general information for reference purposes only and therefore does not constitute our firm’s legal advice. Any opinion stated in this newsletter is a personal view of the author(s) and not our firm’s official view. For any specific matter or legal issue, please do not rely on this newsletter but make sure to consult a legal adviser. We would be delighted to answer your questions, if any.

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