German and French firms eye Thailand’s booming electric vehicle sector
A surge of interest in Thailand’s budding electric vehicle (EV) industry has been noted among businesses from France and Germany. The Thailand Board of Investment (BoI) revealed this interest following an investment promotion roadshow in these European nations.
The BoI’s Deputy Secretary-General, Wirat Tatsaringkansakul, suggested a particularly keen receptiveness from French and German investors. These potential investors are reportedly looking into expanding their production bases and outsourcing companies to satisfy the surging demand of the Asian market.
It’s not just an interest in the pure EV industry. Investment prospects in the components of EVs, electronics, as well as the medical and healthcare sectors are also being eagerly explored by these investors.
France and Germany were the venues for an investment encouragement roadshow, designed to lure in foreign businesses to Thailand. The event was held from June 18 to 23. The roadshow created an opportunity for executives of the BoI to engage Business France, a state-owned agency providing guidance to French companies intending to invest overseas, as well as foreign firms intending to set up businesses in France.
It’s worth noting that the members of Business France range across various sectors. However, they are predominantly small to medium-sized enterprises, with a noticeable strength in auto part production.
From the start of the year up to June 21, French companies tendered six investment proposals to the BoI. These proposals, collectively worth 2.9 billion baht (US$82 million), were crafted to apply for specific investment privileges.
Substantial efforts are being made by the Thai government to bolster foreign investment. The electric vehicle sector seems to be a significant player in this equation, attracting increasing attention from potential investors as a result of the Thai government’s policies promoting local EV manufacturing.
In the previous year, a package of incentives, including tax reductions and subsidies to endorse EV consumption and production for the duration of 2022-2023, gained approval from the cabinet. Subsidies diverge between 70,000 baht (US$2,000) to 150,000 baht (US$4,250) and depend on the vehicle types and models. Coupled with this, lower excise tax and import duties will be implemented on completely knocked down and completely built units.
Germany, too, boasts businesses that are principal investors in the automotive industry in Thailand. In the first half of the current year, German investors forwarded 12 investment projects worth over 5.9 billion baht (US$166 million) to the BoI, primarily in the automotive and machinery sectors.
The BoI recently embarked on another roadshow in the Chinese cities of Chongqing and Chengdu, which started yesterday and is slated to run through July 1. The principal intention of this roadshow is to entice investment, especially in the pivotal EV sector.
In related news, Thailand collaborated with other ASEAN countries to advance battery technology for EVs. To read more click HERE.
