TL;DR Thailand BOI EV incentives 2025 offer up to 8-year corporate income tax exemptions and 100% foreign ownership to achieve the 30/30 policy goal of 30% zero-emission vehicle production by 2030. Companies must meet local content requirements (40-45% for vehicles) and obtain “Made in Thailand” certification to qualify for additional tax benefits. The program responds to U.S. trade pressures while building Thailand’s high-tech industrial ecosystem.
Introduction:
In response to growing global trade pressures, especially U.S. tariffs on Thai exports, Thailand is reshaping its investment strategy for 2025. Led by the Board of Investment (BOI), the new incentives aim to keep the country competitive while building a stronger, high-tech domestic supply chain. Electric vehicles (EVs) and advanced electronics have been identified as key focus areas.
Central to the plan is Thailand’s 30/30 EV policy. The 30/30 policy aims for zero-emission vehicles to make up 30% of all auto production by 2030. This would be equal to 725,000 electric cars and 675,000 electric motorcycles each year. The BOI’s 2025 incentives are designed to attract the investment, tech, and expertise needed to make that happen.
Key Points
- The country aims for zero-emission vehicles to comprise 30% of total auto production by 2030, targeting 725,000 electric cars and 675,000 electric motorcycles annually.
- Companies investing over THB 5 billion in battery electric vehicle manufacturing qualify for 8-year corporate income tax exemptions with no profit cap, while smaller projects receive 3-year exemptions.
- Manufacturers must use 40% local content for BEVs, 45% for PHEVs, and 15% for EV components to qualify for additional 2-year, 50% corporate income tax reductions.
- Companies must obtain certification from the Federation of Thai Industries (FTI) to access local content-related incentives.
- BOI-promoted EV projects allow complete foreign ownership of Thai companies, including land ownership rights and streamlined visa processes for foreign executives and employees.
What’s New in Thailand’s 2025 BOI EV Strategy?
Thailand’s Board of Investment (BOI) has introduced a new strategy for 2025 to promote the country’s role as a leading hub for electric vehicles (EVs) and smart electronics in the region. A key highlight of this plan is the introduction of a new incentive: an extra two-year, 50% corporate income tax reduction for manufacturers that meet updated local content requirements.
Thailand wants to move beyond being just an assembly base. By encouraging companies to source more materials and components locally, the BOI aims to strengthen domestic supply chains, support Thai suppliers, create skilled jobs, and boost the country’s long-term competitiveness in the EV and electronics industries.
BOI Local Content Requirements: What Investors Need to Know
The new local content requirements are a key feature of the BOI’s 2025 plans, and are designed to improve domestic value chains and promote Thailand’s industrial growth, particularly in the EV and electronics sectors.
What is local content?
Local content refers to the use of materials, components, or services that are sourced or produced within Thailand. To qualify, these locally sourced inputs must be directly used within the final production process of the promoted activity, such as vehicle assembly, battery production, or electronics manufacturing.
For example, using Thai-made battery cells, sensors, circuit boards, or automotive components in the production of EVs would count toward meeting local content thresholds.
Minimum Local Content Thresholds
To qualify for the additional two-year, 50% corporate income tax reduction, manufacturers must use a specified percentage of locally sourced raw materials and components in their production.
The thresholds, which are calculated based on the value of the materials, vary by product category:
40% for EVs and Electrical Appliances
Manufacturers of Battery Electric Vehicles (BEVs) and household electrical appliances must ensure that at least 40% of the total value of the raw materials used in their products is sourced from within Thailand.
45% for Plug-in Hybrid Vehicles (PHEVs)
The requirement for Plug-in Hybrid Electric Vehicles (PHEVs) is slightly higher, and has been set at a minimum of 45% local content.
This may be due to the more complex mix of traditional and electric components in these vehicles, offering wider opportunities for local suppliers. For manufacturers of individual EV components, the threshold is set at 15% local content
What Qualifies as Local Content?
The BOI defines “local content” as the total value of raw materials, parts, and components that are sourced domestically and used in the production process. Importantly, the local content is calculated based on the value of the materials and components used in production, not the selling price or retail value of the finished product.
As such, companies must evaluate the full bill of materials for each product, such as a vehicle, appliance, or electronic device, to determine the proportion of local versus imported content. This requires a detailed breakdown of each component used, including its origin and corresponding cost.
To ensure consistency, the BOI has delegated local content verification to the Federation of Thai Industries (FTI), which reviews documentation and confirms whether companies meet the thresholds required to qualify for related incentives.
Local Content Requirements for BOI Incentives
| Product Category | Minimum Local Content (% of Raw Material Value) | Certifying Body | Incentive Unlocked |
| Battery Electric Vehicles (BEVs) | 40% | Federation of Thai Industries (FTI) | Additional 2-year, 50% CIT Reduction |
| Plug-in Hybrid Vehicles (PHEVs) | 45% | Federation of Thai Industries (FTI) | Additional 2-year, 50% CIT Reduction |
| EV Components | 15% | Federation of Thai Industries (FTI) | Additional 2-year, 50% CIT Reduction |
| Smart Electrical Appliances | 40% | Federation of Thai Industries (FTI) | Additional 2-year, 50% CIT Reduction |
BOI Certification for “Made in Thailand” Products
An important requirement for being eligible for the new local content-related incentives is obtaining the mandatory “Made in Thailand” (MiT) certification from the Federation of Thai Industries (FTI).
For investors, this is an important change in how BOI incentives are obtained. It’s no longer about submitting paperwork to the BOI, you now also need to work closely with the private sector, specifically the Federation of Thai Industries (FTI).
To qualify for local content incentives, businesses must plan early to meet the “Made in Thailand” (MiT) certification requirements. This means identifying reliable Thai suppliers, making sure their products meet the necessary quality standards, and working with the FTI to obtain the required approvals.
What Other EV Manufacturing Incentives in Thailand are Available from the BOI?
Announced in July 2025, the “Thai Enterprise Competitiveness Enhancement Measures for the New Global Era” is Thailand’s response to rising global trade pressures, most notably a 36% U.S. tariff on Thai imports starting August 1, 2025.
The BOI’s five-pillar plan focuses on promoting local competitiveness, increasing local content, tightening oversight to prevent trade circumvention, regulating sensitive sectors, and updating rules on foreign labor. Together, these measures aim to future-proof Thailand’s industrial base, supporting both SMEs and multinationals and strengthen its position in a rapidly shifting global economy.
Read Also: Thailand’s S-Curve Industries: Driving Economic Growth & Innovation
Targeted Sectors: EVs, Electronics, and Clean Industry
Thailand’s 2025 investment strategy places an increased focus on high-growth, high-technology industries, particularly electric vehicles (EVs) and advanced electronics, and made these areas the foundation of its future economic development.
To support this, the Thailand Board of Investment (BOI) has implemented targeted incentives aimed at encouraging integration between these sectors and establishing Thailand as a leading hub for next-generation industrial production.
Key promotion categories include:
- Category 3.8: EV Manufacturing – Covers BEVs, PHEVs, and HEVs. Offers top-tier (A1) incentives, including up to 8 years of corporate income tax (CIT) exemption with no cap on exempted profits.
- Category 4.1: Electronic Design – Supports upstream, IP-driven projects with A1-level incentives and 8-year CIT waivers for certified innovation or R&D.
- Category 4.2: Semiconductors & Sensors – Focuses on wafer, ICs, PCBs, and sensors. Large projects over THB 1.5 billion can qualify for up to 13 years of tax exemption under A1+ classification.
Summary of Key BOI Electronics & EV Manufacturing Incentives in Thailand (2025)
| Incentive Type | Description & Duration | Key Conditions/Thresholds | Relevant BOI Category/Activity |
| CIT Exemption (Large BEV) | 8-year Corporate Income Tax (CIT) exemption, capped at 100% of investment. | Total investment capital of at least THB 5 billion. Must submit a comprehensive package proposal. | 3.8: BEV Manufacturing |
| CIT Exemption (Smaller BEV) | 3-year CIT exemption, capped at 100% of investment. Can be extended with additional merits. | Total investment capital below THB 5 billion. Must submit a comprehensive package proposal. | 3.8: BEV Manufacturing |
| Additional CIT Reduction | Additional 2-year, 50% CIT reduction beyond the normal incentive period. | Must meet local content thresholds (e.g., 40% for BEVs) and obtain “Made in Thailand” certification. | EV and Electronics Manufacturing |
| SME Efficiency Upgrade | 5-year CIT exemption, capped at 100% of the investment in efficiency improvements. | SMEs registered with OSMEP investing in automation, sustainability standards, etc. | General SME Support |
| EV Battery Cell Production Grant | Financial support (cash grants) from the Competitiveness Enhancement Fund. | Must be a leading battery maker with a clear plan. Batteries must meet high-performance specs (e.g., energy density ≥150 Wh/kg). | EV Battery Cell Manufacturing |
| Non-Tax Incentives | Permission for 100% foreign ownership, right to own land, facilitated visas and work permits. | Granted to most BOI-promoted projects, with some new restrictions on land ownership for high-risk sectors. | All Promoted Activities |
The objective is not only aimed at attracting foreign investment; it is to develop a self-sustaining, high-tech industrial ecosystem. Due to the growing roles and demand for advanced electronics and semiconductors in electric vehicle (EV) production, the simultaneous development of both sectors is a logical step.
Domestic demand from EV manufacturers promotes local electronics output, while a strong electronics industry improves Thailand’s competitiveness as a preferred manufacturing base for global automotive firms.
Timeline and Key Implementation Dates
For investors looking to take advantage of Thailand’s 2025 BOI strategy and the EV 3.5 package. The following timeline outlines the most dates for compliance and opportunity:
December 31, 2027 – Final deadline for companies seeking to invest in battery cell production to apply for BOI benefits and incentives.
July 16, 2025 – The BOI formally announces its five-point policy framework to address global trade pressures and strengthen industrial competitiveness.
August 1, 2025 – A 36% reciprocal tariff on certain Thai imports by the United States comes into effect, serving as a primary catalyst for the new incentive measures.
2024–2027 – Operational period for the EV 3.5 promotion package, including market-stimulating tax reductions and consumer subsidies.
2024–2025 – Approved companies may import Completely Built-Up (CBU) EVs at a reduced import duty (up to 40%) provided they commit to establishing local production.
December 31, 2025 – Deadline for submitting applications for productivity-enhancing incentives, such as investments in automation and robotics.
By 2026 – Companies benefiting from CBU import privileges under EV 3.5 must begin local EV production, maintaining a 1:2 production-to-import offset ratio.
By 2027 – If local production begins in 2027, the offset ratio increases to 1:3.
BOI Opportunities for Foreign Investors in the EV Supply Chain
Thailand’s 2025 incentive package offers attractive benefits for foreign investors looking to establish a competitive, resilient manufacturing base in Southeast Asia. The new framework enables companies to take advantage of cost-efficient operations within one of the world’s fastest growing EV markets.
As well as the new incentives mentioned above, the BOI also offers the following incentives to companies involved within the EV supply chain.
The BOI’s general business benefits and financial/tax incentives are among the most competitive in Asia, and are aimed at lowering both initial investment costs and ongoing operational expenses for eligible projects.
General Business Benefits
The BOI offers highly attractive benefits that help foreign investors overcome key legal and operational challenges when entering the Thai market.
100% Foreign Ownership of a Thai Company
Companies who have received a BOI promotion, are permitted to be 100% foreign owned (subject to certain exceptions), even in sectors normally restricted under the Foreign Business Act. This allows foreign shareholders full control over operations without requiring a Thai partner, an important advantage in Thailand where foreign ownership is often capped at 49%.
A BOI promotion also exempts qualifying businesses from needing a Foreign Business License, significantly reducing setup time and regulatory complexity.
Land Ownership Rights for BOI Companies
One of the most valuable general business benefits available under BOI promotion is the right for a foreign owned company to own land in Thailand. While Thai law generally prohibits land ownership by foreign entities, BOI-promoted companies may be granted approval to acquire land specifically for use in their promoted activities.
Additional General Business Benefits
BOI-promoted companies may also benefit from:
- Streamlined visa and work permit processes for foreign executives, employees, and technicians
- Permission to remit foreign currency abroad, including dividends, loan repayments, and royalties
- Streamlined import/export procedures, especially for machinery and R&D equipment
- Eligibility for government-sponsored training and R&D support programs
Tax Incentives
As well as the general business benefits, the BOI also offers companies significant tax incentives which can be highly beneficial for a company. Examples include:
- Corporate Income Tax (CIT) Exemptions: Offered on a tiered basis, depending on project type, technology level, and investment size, ranging from 3 to 13 years.
For example, BEV projects under THB 5 billion receive a 3 year exemption (extendable), while those over THB 5 billion qualify for 8 years. Advanced semiconductor projects may receive up to 13 years of exemption.
Additional CIT Reductions: Companies in the EV and electronics sectors that meet local content requirements receive an extra 2-year, 50% CIT reduction, added on top of their existing incentives.
Import Duty Waivers: Full exemptions apply to machinery, R&D equipment, and raw materials used in the production of export goods, helping reduce upfront setup costs.
FAQs: Thailand BOI EV Incentives 2025
What is the 30/30 EV policy in Thailand?
The “30/30” (also known as the 30/30) policy is Thailand’s national target for the electric vehicle industry. It aims for Zero Emission Vehicles (ZEVs), which include Battery Electric Vehicles (BEVs) and Fuel Cell Electric Vehicles (FCEVs), to account for at least 30% of the country’s total automotive production by the year 2030. The specific production goals are to manufacture 725,000 electric cars and 675,000 electric motorcycles annually by that date.
What qualifies as “Made in Thailand” under BOI rules?
To qualify as “Made in Thailand” for the purpose of accessing specific BOI incentives, a product must be certified under the “Made in Thailand” (MiT) program, which is administered by the Federation of Thai Industries (FTI). This certification is granted to products that meet the specified local content thresholds, which are calculated based on the value of locally sourced raw materials and components used in their production.
How much local content is required for BOI tax incentives?
To be eligible for the additional 2-year, 50% corporate income tax reduction, manufacturers must meet the following minimum local content thresholds, based on the value of raw materials:
- Battery Electric Vehicles (BEVs): 40%
- Plug-in Hybrid Electric Vehicles (PHEVs): 45%
- EV Components: 15%
- Household Electrical Appliances: 40%
Can foreign companies access BOI incentives for EV projects?
Yes, absolutely. A key benefit of receiving BOI promotion is the right for a company to be 100% foreign-owned, a privilege not typically available under the Foreign Business Act. Foreign companies are the primary target for the large-scale EV manufacturing incentives, including tax incentives, import duty exemptions, and non-tax benefits like land ownership and facilitated work permits for foreign experts.
Do PHEVs qualify under the BOI’s new EV incentive scheme?
Yes, Plug-in Hybrid Electric Vehicles (PHEVs) are included in the new BOI incentive scheme. To qualify for the additional 2-year, 50% CIT reduction, PHEV manufacturers must meet a 45% local content requirement.
Additionally, the government has revised the excise tax structure for PHEVs, which, effective January 1, 2026, will be determined solely based on the vehicle’s electric range, removing the previous condition related to fuel tank size.
Please note that this article is for information purposes only and does not constitute legal advice
