Incentives will drive renewed interest from automakers.
The decision of Thailand’s Board of Investment (BOI) to approve additional incentives to attract automakers for electric vehicle (EV) production will continue to cement the country’s position as EV production hub, according to an outlook by Fitch Solutions.
The new package of incentives includes a full range of vehicle types and incentives for battery module and battery cell production, as well as the extension of critical EV automotive parts as part of the package.
With Thailand as the largest and most developed EV market in the South East Asia region, incentives will drive renewed interest from automakers and component manufacturers alike as a large domestic electric vehicle market remains a crucial element in attracting investments in EV production.
Fitch Solutions has also highlighted the lack of consumer-focused incentives for the purchase of EVs and an inadequate public charging infrastructure as missing links in further driving the adoption of EVs in the country.
Addressing the mentioned shortcomings will allow Thailand’s 30% EV production target to be more feasible.
Thailand currently ranks as the second most attractive market for automotive production in the Asia region with an overall score of 69.5.
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