The government supports Thai auto parts.

The government supports Thai automotive parts, inviting Thais and foreigners to jointly produce automotive parts, with Thailand holding no less than 60% of the registered capital, with an investment of no less than 100 million baht. Mr. Chai Wachirong, spokesman of the Prime Minister's Office, revealed that the Prime Minister supports Thai automotive parts manufacturers to have opportunities for business joint ventures in the supply chain, upgrading automotive parts production technology to transform modern vehicle production, and attracting investment into the country. The Thai automotive industry is in a critical period of technological transformation. Most Thai automotive parts manufacturers, more than 1,300, are SMEs producing parts at the Tier 2-3 level. The government believes that the factors that will enable Thai automotive parts manufacturers to adapt and develop to keep up with technology, increase their competitiveness, and enter the international supply chain must be to open opportunities and s upport joint ventures between Thai companies and foreign entrepreneurs to expand business networks, transfer technological knowledge, develop personnel, and increase opportunities to use domestic raw materials from domestic entrepreneurs. The measures to promote joint ventures between Thai and foreign companies in the automotive parts manufacturing business will cover both internal combustion engine automotive parts manufacturers and electric vehicle parts manufacturers, divided into 2 cases: Case 1: Projects requesting new investment promotion, which are the establishment of a new legal entity after the announcement date, must be joint ventures between Thai and foreign automotive parts manufacturers, with Thai legal entities holding no less than 30% of the registered capital. Case 2: Projects that have been previously promoted in the automotive parts manufacturing business, which were originally all foreign-owned, must, if they wish to apply for promotion, have a joint venture with a Thai automotive parts m anufacturer of no less than 30% of the registered capital. The shareholders who are Thai juristic persons under the conditions of this measure must have been established for at least 3 years as of the date of application submission and must have Thai natural persons holding shares of at least 60% of the registered capital. In both cases, the investment must be at least 100 million baht and the application for promotion must be submitted within 2025. They will receive the benefit of exempting corporate income tax from the normal criteria for an additional 2 years. 'The Prime Minister promotes Thai entrepreneurs in all dimensions of investment and has ordered them to increase their advantages, design interesting investment support policies, attract and promote investment, especially in the automotive parts industry, both in traditional and modern vehicles, by promoting joint ventures between Thai companies and foreign entrepreneurs according to the above measures and privileges, which will lead to cooperation , expand business networks, and benefit both parties. Thai entrepreneurs can survive, support the transition, and seamlessly adapt to modern technology together. There is a significant opportunity to enter the global supply chain,' said Mr. Chai. Source: Thai News Agency