BoI holding back EV applications

BoI holding back EV applications

A BMW electric vehicle at a recent motor show. The German carmaker plans to apply for the BoI's electric vehicle privileges, despite the suspension of applications.
A BMW electric vehicle at a recent motor show. The German carmaker plans to apply for the BoI's electric vehicle privileges, despite the suspension of applications.

The Board of Investment's (BoI's) suspension of electric vehicle (EV) manufacturing applications will remain, even though a number of carmakers have announced their intentions to join the government's EV scheme.

"We will not propose any EV applications at the BoI's board meeting chaired by Prime Minister Prayut Chan-o-cha on May 9," said BoI secretary-general Duangjai Asawachintachit.

"Applications for plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) are allowed until Dec 28, so we have plenty of time to consider each project."

Ms Duangjai said the BoI will work closely with carmakers to propose their projects to board meetings "soon".

The government kicked off the EV promotional privileges for carmakers and auto-parts makers last March, covering three types of EVs: hybrid electric vehicles (HEVs), PHEVs and BEVs.

The BoI offers promotional privileges, including tax holidays of 5-8 years and import duty exemptions for cars and machinery.

Application for the HEV project closed in December. Toyota, Honda, Nissan, Mazda and Suzuki applied, but only Toyota has been granted the BoI incentives.

For PHEVs and BEVs, German carmakers Mercedes-Benz and BMW plan to join the EV scheme.

EV makers FOMM of Japan and SET-listed Energy Absolute Plc also plan on filing applications.

Separately, the BoI earlier reported that the investment applications from January to March for government incentives totalled 333 projects with a value of 203.63 billion baht.

First-quarter applications accounted for 28% of the BoI's full-year target of 720 billion baht, and the project value of applications in the period was about 100 billion baht higher than the previous year's level.

"Some of the applications will be brought forth at the upcoming board meeting," Ms Duangjai said.

"With all good sentiments and confidence for the country's private investment, the BoI is confident applications will meet the 2018 target."

In 2017, investment applications totalled 1,456 projects worth 641 billion baht.

Of the total, the projects applied for in the Eastern Economic Corridor (EEC) scheme made up 388 projects worth 269 billion baht.

In 2017, investors applied for projects worth 392 billion baht in the 10 targeted industries, or the S-curve.

In a related development, the BoI has teamed up with UBM Asia Thailand and other educational institutions to hold Subcon Thailand 2018, Southeast Asia's largest industrial subcontracting exhibition and business matching event.

Subcon is intended to serve business-to-business activity in the region, from upstream to downstream.

The BoI expects the value generated from business matching during May 16-19 to grow by 17% from last year to 12 billion baht, with 6,500 business pairs.

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