Thailand’s EV Sector is set to receive a significant investment boost as firms from France and Germany express a keen interest in the burgeoning sector. The Thailand Board of Investment (BoI) disclosed the European interest following an investment promotion roadshow held in France and Germany.
Deputy Secretary-General of the BoI, Wirat Tatsaringkansakul, highlighted the pronounced interest from French and German investors who are eyeing to broaden their production bases and outsourcing firms to meet the soaring Asian market demand.
It’s not solely the pure EV sector that has captivated investors. The components of EVs, electronics, as well as the medical and healthcare sectors are also investment targets.
The investment promotion roadshow took place from June 18 to 23, in an effort to entice foreign businesses to Thailand. A key feature of the event was the collaboration with Business France, a state-owned agency assisting French companies planning overseas investments, as well as foreign firms intending to establish businesses in France.
Business France boasts a wide range of members, most of which are small to medium-sized enterprises that specialize in auto part production. Since the beginning of this year, six investment proposals, cumulatively worth 2.9 billion baht (US$82 million), were submitted to the BoI from French firms for specific investment privileges.
The Thai government has made considerable efforts to stimulate foreign investment, with the EV sector featuring prominently in this strategy. A package of incentives, including tax reductions and subsidies for EV consumption and production from 2022 to 2023, has been approved by the cabinet.
Germany, another major player in the global automotive industry, has also shown interest in the Thai market. In the first half of the year, German investors proposed 12 investment projects worth over 5.9 billion baht (US$166 million), mainly in the automotive and machinery sectors.
The BoI has now turned its attention to China, with another investment roadshow planned in the cities of Chongqing and Chengdu, running until July 1. The focus of this tour remains on the vital EV sector, a testament to Thailand’s growing prominence in the global EV industry.
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