Investment in Thailand is profitable since this country becomes a hub of many sectors, including automotive. The business of automobile in Thailand is promising and it invites many investors, especially from overseas. The opportunities are open and the country proves better than expected.
Thailand also has become a country that can export its automobile output to several countries, especially other Asian countries. With the popularity of electric vehicles that keeps increasing nowadays, the country aims to be the biggest hub. Here are some opportunities to look forward to.
The Opportunities of Automobile in Thailand Investment
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Free trade agreement
Thailand is good at making agreements, especially for free trade. The country has dealt with ten ASEAN countries, China, New Zealand, India, and Australia. Exporting the automobile output to those countries will be easier since the tax is less heavy for the manufacturers.
Since the raw materials are coming from non-Thailand, this country takes the raw materials from the countries that are on the list of FTA. The manufacturers can get access easier and the price is lower. This opportunity makes the business goes smoothly and expects to invite more investors.
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Opening EV industry
In the EV market share in Thailand, the country has released that they will tighten the emission standards to produce automobiles. Manufacturing should be able to produce green vehicles, and electric vehicles are in their plan as the next generation of the automotive industry.
The country will focus on the infrastructure in three main areas in Thailand to locate this industry. They will design the automobile with green standards, not only for local usage but also export to other countries. The policies from the government have been integrated recently.
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Tax exemption
The manufacturers and investors will be able to enjoy tax exemption policies since it is one of the plans for EV market share in Thailand. The exemption will be for 15 years. It invites more people to hand in hand establishing corporations in the automotive industry.
Not only producing electric vehicles, but the tax exemption will also apply to the manufacturers that produce automotive parts and accessories. There will be some financial incentives for the corporates, as well as facilities for the workers and expatriates in this industry.
Those opportunities in the industry of automobile in Thailand expect to welcome more investors and new-established corporations in the country. The permit is easier for the government. Tax redemption and permission to stay are other benefits to open more opportunities.