Reports reveal that Thailand has incredible investment potential in the field of the automotive industry. Over the past 50 years, the country has improved its operations from being an assembler of various auto parts to a top-rated automotive manufacturing hub.
Thailand has a leading automotive manufacturing base among all Southeast Asian Nations and with shipments to more than 100 countries, they have become the 13th largest explorer of automotive parts and 6th largest manufacturer of commercial vehicles in the world. By the end of 2020, Thailand claims to manufacture more than 350000 vehicle units which makes it a top performer in the automotive industry at the global level.
It is observed that the Thai auto parts and automobile industry promise almost 12% economic growth for the country while employing more than 500,000 people at work. The nation has now started establishing its presence in all leading markets, component manufacturers, and assemblers around the world. Some of the leading companies such as BMW, Nissan, Mitsubishi, Honda, Isuzu, and Toyota together make up almost 2 million vehicles per year in Thailand. The preferred locations for most of these automotive manufacturers are Chonburi, Prachinburi, Pathum Thani, Ayutthaya, Chachoengsao, Bangkok from where they can have easy access to leading markets such as India, China, and ASEAN.
Opportunities for Foreign Investors in the Thai Automotive Industry
One of the main reasons why foreigners can find great growth opportunities for leading automotive businesses in Thailand is the supportive government policies. The laws and regulations allow foreign investors to receive great tax and non-tax benefits that further lead to chances of investment in the industry. Some of the top-rated incentives that foreigner automotive investors can receive in Thailand include:
• The biggest benefit is an exemption from corporate income tax for 8 years after industry establishment.
• Exemption of import duty on machinery and raw materials used to manufacture various export products.
• Permit to bring several experts and skilled workers to work for promoting investment-related activities.
• Permit to buy land and do Company Registration in Thailand.
• Permit to collect and take out the money in terms of foreign currency.
The auto manufacturers in the country can also benefit from the free trade agreement (FTA) in the country. At present Thailand has 6 different FTAs with India, China, Australia, and New Zealand, etc. The law also assists investors with an opportunity to expand the automotive supply chain and gain a competitive advantage for importing components, raw materials, and many other production inputs while eliminating the trouble associated to import duties.
The country also allows manufacturers to use FTAs for gaining market access to Southeast Asia while providing enhanced protection to their intellectual property and investments. It further leads to better business opportunities for foreign investors in terms of business development, market access, price competitiveness, government procurement, and investment expansion.
Another amazing news is that the Thai government is also providing more incentives for companies that are working in the field of electric vehicle manufacturing. The popularity of fuel-free models has opened new doors for the growth of the automotive industry in the country.
Thailand has a leading automotive manufacturing base among all Southeast Asian Nations and with shipments to more than 100 countries, they have become the 13th largest explorer of automotive parts and 6th largest manufacturer of commercial vehicles in the world. By the end of 2020, Thailand claims to manufacture more than 350000 vehicle units which makes it a top performer in the automotive industry at the global level.
It is observed that the Thai auto parts and automobile industry promise almost 12% economic growth for the country while employing more than 500,000 people at work. The nation has now started establishing its presence in all leading markets, component manufacturers, and assemblers around the world. Some of the leading companies such as BMW, Nissan, Mitsubishi, Honda, Isuzu, and Toyota together make up almost 2 million vehicles per year in Thailand. The preferred locations for most of these automotive manufacturers are Chonburi, Prachinburi, Pathum Thani, Ayutthaya, Chachoengsao, Bangkok from where they can have easy access to leading markets such as India, China, and ASEAN.
Opportunities for Foreign Investors in the Thai Automotive Industry
One of the main reasons why foreigners can find great growth opportunities for leading automotive businesses in Thailand is the supportive government policies. The laws and regulations allow foreign investors to receive great tax and non-tax benefits that further lead to chances of investment in the industry. Some of the top-rated incentives that foreigner automotive investors can receive in Thailand include:
• The biggest benefit is an exemption from corporate income tax for 8 years after industry establishment.
• Exemption of import duty on machinery and raw materials used to manufacture various export products.
• Permit to bring several experts and skilled workers to work for promoting investment-related activities.
• Permit to buy land and do Company Registration in Thailand.
• Permit to collect and take out the money in terms of foreign currency.
The auto manufacturers in the country can also benefit from the free trade agreement (FTA) in the country. At present Thailand has 6 different FTAs with India, China, Australia, and New Zealand, etc. The law also assists investors with an opportunity to expand the automotive supply chain and gain a competitive advantage for importing components, raw materials, and many other production inputs while eliminating the trouble associated to import duties.
The country also allows manufacturers to use FTAs for gaining market access to Southeast Asia while providing enhanced protection to their intellectual property and investments. It further leads to better business opportunities for foreign investors in terms of business development, market access, price competitiveness, government procurement, and investment expansion.
Another amazing news is that the Thai government is also providing more incentives for companies that are working in the field of electric vehicle manufacturing. The popularity of fuel-free models has opened new doors for the growth of the automotive industry in the country.
