Thailand has approved incentives for joint ventures (JV) between Thai and foreign companies to manufacture automotive parts for vehicles using all types of propulsion systems, its Board of Investment said on Thursday.

A Reuters report noted Thailand is Southeast Asia's biggest autos production centre and an export base for some of the world's top carmakers. The government is heavily promoting investments in electric vehicles in particular, with incentives to lure major firms.

Both new projects and existing parts manufacturers that are already enjoying promotions but are transforming into a JV are eligible for two years of additional tax exemption, capped at eight years, providing they apply before the end of 2025, the BOI said.

To qualify, a new JV must invest at least THB100m (US$2.82m) in the manufacturing of auto parts and comprise a Thai and foreign company, with the local firm required to be at least 60% Thai owned and provide a minimum 30% of the JV's registered capital, it said, according to Reuters.