BOI Thailand Benefits for Fleet Owners in Thailand

by Konrad Legal Company Limited Company Registration in Thailand

What’s the Scheme?

Thailand's National Electric Vehicle Policy Committee has implemented tax incentives to facilitate the shift from commercial fleets of large trucks and buses to battery-powered electric vehicles (BEVs).

Key Takeaways

To encourage the adoption of electric trucks and buses, Thailand's EV Board approved tax incentives that target reducing pollution and supporting companies' net-zero goals.
By providing special tax deductions to companies purchasing electric trucks and buses and financial support to battery cell manufacturers, the nation is positioning itself as a hub for EV manufacturing.
With over 78,000 registered EVs benefiting from tax discounts and subsidies, the EV3 program, which promotes EV passenger cars, has already demonstrated success. Participating companies are, however, required to manufacture locally.

The News in detail!

In a move to promote the adoption of electric vehicles (EVs), the Thailand National Electric Vehicle Policy Committee (EV Board) has implemented several incentives. Firstly, tax incentives have been approved to encourage companies to switch their large commercial trucks and buses to battery-electric vehicles (BEVs). Secondly, cash grants will be provided to manufacturers of EV battery cells. These policies aim to expand Thailand's support for the entire EV ecosystem and strengthen its position as a significant hub for EV manufacturing in the region.

To promote eco-friendly practices, reduce pollution, and position Thailand as a significant player in the EV manufacturing industry, a series of incentives have been introduced. These incentives provide special tax deductions for companies procuring electric trucks and buses to support their progress towards net-zero emissions targets. Additionally, cash grants are offered to manufacturers of EV battery cells, facilitating the development and production of these essential components.

Thailand plays a substantial role in the automotive industry, positioning itself among the top 10 countries worldwide regarding automotive production and total exports. Notably, Thailand stands out in Southeast Asia as the first country to provide special incentives for both the supply and demand sides of electric vehicles (EVs). Through the 30@30 policy, Thailand has established a clear goal: to have at least 30% of domestically-produced cars be EVs by the year 2030.

Eligible companies will receive a special tax deduction to encourage the purchase of electric-powered buses and trucks. For vehicles manufactured domestically, companies can deduct expenses up to twice the actual price, with no upper limit. Imported vehicles will qualify for a deduction of 1.5 times the actual price.

Eligibility to avail of the Benefits

The eligible large electric vehicles include container trucks, liquid trucks, hazardous substance trucks, special trucks, tow trucks, as well as both air-conditioned and non-air-conditioned electric buses.

Furthermore, the EV Board also approved a plan to promote local manufacturing of battery cells for EVs and energy storage systems (ESS). Financial support will be provided through Thailand’s Competitiveness Enhancement Fund, along with other benefits available under the Competitiveness Enhancement Act for companies meeting specific criteria.

To qualify for investment promotion under this scheme, a company must meet the following requirements:

Being a leading and well-recognized battery manufacturer providing batteries to EV manufacturers;
Having a clear plan to produce battery cells for batteries used in EV, and also if possible to produce battery cells for batteries used in ESS;
The batteries must have a high energy density of not less than 150 Wh/kg;
The battery must 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.

These measures are expected to significantly increase the adoption of electric trucks and buses, reduce pollution from transportation and manufacturing sectors, and support companies’ efforts to achieve their net-zero targets.

EV Sector Update

The meeting also heard an updated report on the EV3 measures to promote the use of EV passenger cars.

Statistics as of 31 January 2024 show that, since the scheme started in 2022, a total of 14 manufacturers and importers of BEV cars and pickups have registered a total of 78,554 EV cars to enjoy the excise tax discounts and subsidies. According to the conditions of the EV3 scheme, these companies will have to produce in Thailand at least one vehicle for each vehicle imported.

What it has for you?

If you already own a fleet of commercial vehicles, now is the time to upgrade yourself. In addition to gaining tax incentives, you can enjoy special deductions in the prices. You must note that the scheme is open to both local and global investors in Thailand.

In addition to supporting the fleets, BOI also aims to promote the EV Industry as a whole starting from the manufacturing segments. Read our article on BOI Promotion for the EV Industry in Thailand.

Are these benefits applicable to all global investors and are you eligible to apply for BOI Thailand promotions?

To get answers to such or more complicated questions, you must consult with a leading corporate law firm in Thailand with experience in BOI Company Registration.

For direct support, feel free to email us at officer@konradlegal.com.