Thailand Unveils New Incentives For Automotive And HEV/PHEV Manufacturing

Thailand’s Board of Investment (BOI) has introduced special investment promotion measures to accelerate the development of advanced automotive manufacturing technologies and the transitional electric vehicle ecosystem. Published in the Government Gazette on March 31, 2026, BOI Notification No. 4/2569 aims to stimulate the use of automation and robotic systems to improve production efficiency and increase the competitive capacity of Thailand’s automotive industry.

Qualifying Project Categories

All existing and new investment projects under the following promotional categories are eligible to apply for the new privileges:

• General automotive manufacturing (category 3.6)
• Manufacture of plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs) (category 3.8)

Applications will be accepted until the end of 2027.

Incentives and Benefits

Eligible investment projects will receive exemption from import duties for machinery, and a 50% corporate income tax (CIT) exemption for three years on investment in automation and robotics systems, excluding land costs and working capital.

If at least 30% of the total value of the modified or total machinery used is linked to or supports Thailand’s domestic automation machinery manufacturing industry, this CIT exemption will be increased to 100%.

Eligible existing investment projects will be exempt from CIT on existing business income, with the exemption period counted from the date on which income is generated following receipt of the investment promotion certificate.

Eligibility Conditions

Projects must meet the following criteria to qualify for these privileges:

• The project must not currently benefit from CIT exemption. Those that have already received investment promotion may apply once their existing CIT exemption or reduction benefits have expired.
• The project must have an investment value of at least THB 1 million, excluding land cost and working capital but including expenditures for machinery, equipment, software, programs, information technology systems, and cloud or data center services, subject to conditions stipulated in the notification.
• The application must include a plan for investing in automated machinery or robots to support production within the project, in accordance with BOI criteria.
• The application must include a product development plan for vehicles utilizing technologies focused on cleanliness, energy efficiency, safety, intelligent mobility, or other appropriate technologies.

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