- Thailand’s investment authority is reviewing new automotive policy measures with industry associations.
- Proposals focus on xEV incentives, domestic demand recovery, and stronger local supply chains.
The Board of Investment held consultations with key automotive industry groups to review Thailand BOI automotive policy proposals aimed at strengthening the country’s position as a global vehicle production hub. The discussions took place on March 4, 2026, bringing together major industry associations representing vehicle manufacturers, electric mobility stakeholders, and automotive component suppliers.
Industry associations present transition priorities
Participants included the Thai Automotive Industry Association (TAIA), the Electric Vehicle Association of Thailand (EVAT), the Thai Auto-Parts Manufacturers Association (TAPMA), and the Automotive Industry Club under the Federation of Thai Industries (FTI). The meeting focused on identifying priority policy measures to support the sector’s transformation toward electrified mobility while maintaining Thailand’s competitiveness in global vehicle manufacturing.
Key policy measures proposed by the private sector
Industry representatives outlined three priority areas that they believe are critical for sustaining long-term investment and production growth.
Continuation of electrified vehicle incentives
Stakeholders emphasized the importance of maintaining incentives covering investment, production, exports, and domestic adoption of electrified vehicle technologies. These incentives would apply across hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), and battery electric vehicles (BEV) to maintain investor confidence.
Stimulating domestic vehicle demand
The private sector also highlighted the need to revive domestic vehicle demand, which has slowed due to high household debt and stricter lending conditions. Suggested measures include enhanced tax deductions for vehicle purchases, vehicle scrappage initiatives, and expanded adoption of electric vehicles within government fleets.
Strengthening local automotive supply chains
Another priority involves strengthening Thailand’s automotive supply chain by encouraging greater localization. Proposed measures include preferential policies for domestically produced vehicles and initiatives to increase the use of locally manufactured components among EV manufacturers. These recommendations are part of the broader Thailand BOI automotive policy proposals expected to shape a comprehensive automotive support package for the incoming government.
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