Advance Blog

January 14, 2022
Tilleke

BOI Expands Promoted Activities for Electric Vehicle Manufacturers

Thailand’s Board of Investment (BOI) recently published BOI Notification No. Sor. 8/2564, which extends the scope of investment promotion covering electronic vehicle (EV) industry manufacturers to include the production of “automotive platforms” for electric vehicles, and creates a new category of BOI promoted activities covering the manufacture of electric bicycles (E-bikes).Automotive PlatformsThe following investment promotion categories have been extended:

  • 4.24 – Manufacture of Battery Electric Vehicles
  • 4.26 – Manufacture of Electric Battery Tricycles
  • 4.27 – Manufacture of Electric Battery Busses and Trucks

These categories now include the manufacture of “automotive platforms”—which must include an energy storage system, charging module, and front and rear axle module—benefiting from similar tax incentives and subject to additional conditions, as detailed below.

New BOI Promotional Category for E-Bike Production

The BOI has also introduced a new category, No. 4.28, covering the manufacture of E-bikes. Projects under this category will be eligible for a three-year CIT exemption with an additional one-year exemption if certain criteria are met.Applications for this category must cover the manufacture of E-bikes, the manufacture or sourcing of electric batteries, and a management plan for used batteries.In addition to the general conditions for EV projects (industrial standards, manufacturing timelines, etc.), the BOI has also imposed the following conditions specific to E-bike projects:

  • E-bike frames must be produced from light-weight materials such as aluminum alloy, chromium–molybdenum alloy steel (chrome moly), titanium alloy, and carbon fiber; and
  • E-bike batteries must adopt environmentally-friendly technology.

Interestingly the BOI allows E-bike production lines to jointly use manufacturing lines for ordinary bicycles. However, the sale of ordinary bicycles is regarded as non-BOI-promoted income and will not be entitled to BOI tax incentives. These new provisions, intended to stimulate both local and foreign investments in the electric automotive industry, seem to complete the BOI promotion scheme for the full range of electric vehicles. They will hopefully accelerate the expansion of Thailand’s electric vehicle production market, and the adoption of environmentally friendly vehicle technology in Thailand.For more details on any aspect of investment promotion in Thailand, please contact Napassorn Lertussavavivat at napassorn.l@tilleke.com or +66 2056 5662, or Supasit Saypan at supasit.s@tilleke.com or +66 2056 5994.

Napassorn Lertussavavivat
Napassorn Lertussavavivat is an associate in Tilleke & Gibbins’ corporate and commercial team in Bangkok. She has particular expertise in company establishment, licensing and permits, Board of Investment (BOI) applications and promotional schemes, due diligence for M&As, labor and employment, and related legal compliance matters in Thailand.
Supasit Saypan
Supasit Saypan is an associate in Tilleke & Gibbins’ corporate and commercial group in Bangkok. His Practice focuses on corporate and commercial law, where he regularly advises domestic and international clients across various industries on company establishment and licensing in Thailand, including obtaining Foreign Business Licenses and securing investment promotion from Thailand’s Board of Investment.
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