Honda Motor plans to build hybrid electric vehicles (HEVs) in Thailand as part of a THB5bn (US$160bn) combined investment with its key parts suppliers.
The company's local manufacturing subsidiary, Honda Automobile Thailand, this month applied to the Thai Board of Investments (BoI) for its new hybrid/electric vehicle investment privileges including duty exemptions on the initial import of key parts and machinery and tax holidays for earnings.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The THB5bn investment budget includes THB1.6bn to be provided by Honda for local vehicle production and the remainder to be provided by suppliers for the local production of key parts such as battery packs and electric drive systems.
The current BOI package of incentives for hybrid and electric vehicles was introduced in March last year and expires at the end of 2018.
Last year the BOI approved incentives for Toyota's THB19bn investment to build 7,000 HEVs per year, 70,000 battery packs as well as axles and body parts such as doors and bumpers – most of which are to be exported.
Mercedes-Benz and BMW are also in the BOI programme and are currently building facilities for the production of battery packs for hybrid vehicles.
