Thailand BOI: EV & E&E Incentives Boost Local Content
- Thailand's Board of Investment (BOI) approved new measures today to promote the use of locally sourced components in the production of battery electric vehicles (BEV), plug-in hybrid electric...
- the key incentive is a two-year, 50% corporate income tax (CIT) reduction for companies that meet specific criteria.
- To qualify for the tax benefits, EV manufacturers must incorporate locally produced parts representing at least 40% of the total raw material value for BEVs and 45% for...
Seize the latest from thailand’s BOI: New incentives are fueling the rise of local content for electric vehicles (EVs) and electronics & electrical (E&E) appliances. Discover how thailand is driving its manufacturing sector forward,offering significant corporate income tax breaks to companies integrating more Thai-made parts. EV manufacturers are incentivized with a 50% CIT reduction for incorporating at least 40% local content for BEVs and 45% for PHEVs. The plan, also benefitting E&E appliance makers, requires “Made in Thailand” certification. News Directory 3 reports on this initiative designed to transform Thailand into a regional hub for EV production. Businesses are encouraged. The BOI expects significant demand for local parts. Discover what’s next in Thailand’s evolving manufacturing landscape.
Thailand Incentivizes Local EV Parts with Tax breaks
Updated June 30, 2025
Thailand’s Board of Investment (BOI) approved new measures today to promote the use of locally sourced components in the production of battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and various electrical appliances. The initiative aims to bolster the country’s manufacturing sector and reduce reliance on imported parts.
the key incentive is a two-year, 50% corporate income tax (CIT) reduction for companies that meet specific criteria. This tax break serves as a significant financial advantage for manufacturers committed to integrating Thai-made parts into their products.
To qualify for the tax benefits, EV manufacturers must incorporate locally produced parts representing at least 40% of the total raw material value for BEVs and 45% for PHEVs. The electronics and electrical (E&E) appliance sector, specifically smart and standard appliance manufacturers, also need to meet a 40% local content threshold.
Both existing BOI-promoted projects, whose original CIT exemptions are still active, and new investment projects are eligible to apply. Furthermore, manufacturers must obtain “Made in Thailand” (MiT) certification from the Federation of Thai industries (FTI) to be considered for the incentives. This certification ensures that the products meet the required standards for local content and quality.
What’s next
The BOI expects the new measures to considerably increase the demand for locally produced parts,fostering growth and innovation within Thailand’s automotive and electrical appliance industries. The initiative is part of a broader strategy to position Thailand as a regional hub for electric vehicle production and advanced manufacturing.