Thailand is an important automobile producer in Southeast Asia, with the advantages of a complete industrial chain, a large domestic and foreign market, and a wide range of radiation. The output value of the automobile manufacturing industry accounts for about 10% of the national total industrial output value, and the labor force absorbed also accounts for about 10% of the national manufacturing employment. Since the 1990s, the Thai government has established an overall development model for the export-oriented automobile industry, signed free trade agreements with many countries and regions, and actively introduced many foreign-funded enterprises into the Thai market. Many well-known auto brands in the world have invested in building factories or expanding production capacity in Thailand, establishing production bases and R&D centers, and exporting their products to foreign markets. The proportion of exports in the auto industry is increasing year by year.
With the rise of new energy vehicles, the Thai government has made the industry part of its national development strategy and has established a National Electric Vehicle Policy Committee. In March 2021, the committee released a master plan, proposing that by 2035, it will focus on three major areas: zero-emission vehicles, next-generation vehicle technology, and business model innovation, to build a complete electric vehicle industry chain and master advanced core technologies. Sarani, Executive Deputy Minister of the Ministry of Higher Education and Science, Technology and Innovation of Thailand, said that new energy vehicles are a target industry strongly encouraged by the Thai government, and Thailand is committed to building itself into a manufacturing center and export base for new energy vehicles.
To achieve the above vision, the Board of Investment of Thailand has introduced a series of investment promotion incentives, including tax exemptions for automakers that produce more than one type of electric vehicle component; pure electric vehicles can enjoy a tax holiday of up to 10 years, and hybrid vehicles can enjoy the most tax exemption. 6 years; cut the purchase tax of new energy vehicles and provide car purchase subsidies; set up a project investment incentive fund with a total amount of 2.7 billion US dollars, etc. Chadi, director of the high-tech industry project department of the Thailand Investment Promotion Council, said that car companies from many countries have applied for these preferential policies, and the committee is studying the introduction of the second wave of investment preferential policies.
In recent years, Chinese companies have actively strengthened cooperation with the Thai automotive industry. In the 2021 domestic car sales rankings in Thailand, two Chinese car brands, MG and Great Wall, entered the top ten on the list. According to the head of Great Wall Motor's ASEAN region, since the launch of the Great Wall brand in Thailand in February 2021, the company has launched three new energy vehicles in the Thai market. Himile (Thailand) Co., Ltd. is one of the overseas companies of Himile Group, a Chinese auto tire mold maker. According to reports, in 2021, the factory orders will reach 200 million yuan, 80% of the products will be exported to Europe and the United States, and 20% will be supplied to automotive tire manufacturers in Thailand. The analysis of "Thailand Business Daily" believes that Thailand's automobile industry is in the initial stage of transformation from traditional gasoline vehicles to new energy vehicles. The cooperation between China and Thailand will help to promote the transformation of Thailand's automobile industry and provide consumers with more choices of automobile brands with higher technology content.
Pi Bin, an expert from the Kaitai Research Center, a Thai think tank, said that in terms of investment, factory building, taxation, labor, etc., the government will provide more preferential policies to the field of automobile production in the future, and increase investment in scientific research institutions and related majors in colleges and universities. Strengthen vocational training for professionals. In particular, it is necessary to seize the opportunity of the development of new energy vehicles and promote the greater development of Thailand's automobile industry.