The new electric vehicle (EV) incentive packages will play a vital role in increasing investment in the automotive industry and related businesses, says the Federation of Thai Industries (FTI).
Thailand needs more investment in its targeted S-curve industries, which include new-generation cars, to ensure sustainable economic growth and increase the country's competitiveness, said Surapong Paisitpatanapong, vice-chairman of the FTI and the spokesman for the FTI's Automotive Industry Club.
"We are happy with the EV Board's resolution that supports EV manufacturing and its supply chain," he said.
"The incentives come as investors are waiting for new packages after the EV3.5 scheme."
EV3.5 is a package that includes subsidies, reduced import duties for fully assembled cars and an excise tax cut.
The cabinet, which approved the EV3.5 package in December last year, wants it to propel EV industry growth between 2024 and 2027.
The new package unveiled yesterday is meant to attract investors, offering government support for EV manufacturing in the commercial truck and pickup segments.
"With the new incentives, we believe prospective investors are more likely to make a decision to invest in Thailand," said Mr Surapong.
Japanese and Chinese car companies in Thailand are interested in expanding their production in the commercial truck and pickup segments to serve the growing EV market in Asean. Electronic parts manufacturers and EV charger developers also benefit from the new incentives.
The automotive industry contributes 11% of the Thai GDP and employs more than 750,000 workers, making Thailand the 10th-largest producer of internal combustion engine cars in the world.
Thailand exports vehicles to 170 countries.