Thailand Approves Incentives to Promote Joint Ventures Investment in Auto Parts Sector

On August 8, according to Southern Finance, Thailand has approved new incentives to promote joint ventures investment in the auto parts sector. New joint ventures (with an investment of at least 100 million baht and established jointly by local and foreign companies in Thailand) and existing auto parts manufacturers that have already enjoyed preferential treatment but are transforming into joint ventures, can apply for an additional two years of tax exemptions if they apply before the end of 2025. However, the total duration of tax exemptions cannot exceed eight years. This policy applies to manufacturers of components for internal combustion engines, hybrid vehicles, and electric vehicles.