According to a source quoted by The Nation Thailand, BMW Thailand is in talks with its parent company in Germany to provide electric vehicles (EVs) at its Rayong plant, in order that BMW electric vehicles can profit from the federal government’s package of subsidies and excise tax cuts.
BMW Thailand currently offers several electric vehicle models imported from China and Germany.
BMW Thailand would must strike a take care of the federal government committing to domestically producing electric vehicles relatively than importing them to qualify for subsidies and import excise tax relief, which could lead to a price cut.
The source, BMW Thailand’s chief executive, claimed that talks with the parent company to provide electric vehicles at BMW Group Manufacturing Thailand’s Rayong plant are still ongoing.
The source also said the business could be eligible for financial advantages from the Board of Investment if the BMW plant also produced electric vehicles (BOI).
The BOI allowed automakers to use for tax credits as electric vehicle manufacturers in 2018. The tax incentive program for electric vehicle manufacturers remains to be open, in accordance with the BOI.
According to the BOI announcement, a manufacturer that spends at the least Bt5 billion on the production of electrical cars, motorcycles, three-wheelers, trucks and boats can be exempt from corporate tax for eight years.
If the investment is lower than Bt5 billion, the manufacturer will receive a three-year corporate income tax exemption. After growing 3 percent in 2020-2021, BMW’s Rayong plant produced 33,428 cars and motorcycles.
According to the source, BMW in Thailand may very well be ready to start out producing electric vehicles in 2023. The Rayong plant has been operating for 20 years, and BMW has 31 factories in 15 countries.
BMW’s corporate boss has revealed his intention to provide electric vehicles across all product lines, including the X3 Series, 5 Series, 7 Series and X1. The company added that it would buy about 10 different versions of electrical vehicles over the following two years.
According to the source, because of this, the Rayong factory may have the ability to provide some models as factories in Germany and China may not have enough space to finish the master plan.
Source: NationThailand.com
