Production of multi-purpose engines and equipment
The production of metallic products in Thailand are by no means monolithic and are an amalgamation of different products spanning several industries. Nonetheless, the Board of Investment promotes projects involved with the production of metallic parts or goods derived from metals. This includes both finished goods sold directly to end users as well as products to be sold to other manufacturers for the purpose of producing finished goods.
The Board of Investment categorizes this primarily into three parts: products made from metals or alloy powders, products made from regular metals or metallic parts, and other metallic products or parts. Each are given different sets of incentives depending on which is most relevant to the project.
Conditions
- Projects involved with the forming process of engine parts such as cylinders, crank cases, and connecting rods are eligible for A4 privileges.
- Those involved with the assembly of multipurpose engines or equipment are eligible for B1 privileges.
Production of multi-purpose engines and equipment
The production of machinery in Thailand is a crucial industry that supports the majority of the Kingdom’s largest sectors, namely manufacturing and automotive. While the industry has grown significantly over the last few decades, gaps in its development still remain especially given the rise in automated machinery and other complex technologies. The Board of Investment therefore wishes to promote projects engaged in these activities to elevate the machinery sector in Thailand.
As a result, the Board provides a number of privileges to projects involved with the production of machinery, equipment, and mechanical parts, particularly automated machinery such as robots.
Conditions
- The production of automated machinery or equipment that possess include engineering designs such as control system configurations are eligible for either A1 or A2 privileges. Those that integrate automation systems are eligible for A1 privileges, whereas those without them will be eligible for A2 privileges.
- The production of machine equipment or parts are eligible for A3 privileges. Projects must include part-forming processes as well as an engineering design process.
- Assembling machinery and machine equipment are eligible for A4 privileges. However, assembling processes must be approved by the Board.
- Assembling robots, parts, or equipment for automated machinery are eligible for A3 privileges.
Production of automobile engines
Given the significant role played by Thailand’s automotive industry in the country’s economy, the production of automobile engines plays an important role as a supporting activity to facilitate the production of automobiles not only for domestic consumption, but also for export. The Board makes a distinction between the production of engines for automobiles and those for motorcycles.
- Project producing engines for automobiles are eligible for A3 privileges. Projects must also integrate forming processes of at least 4 of the following: cylinder heads, cylinder blacks, crankshafts, camshafts, and connecting rods. If projects do not have these processes but still possess a Board-approved assembly process, they will be eligible for A4 privileges.
- Projects producing motorcycle engines are eligible for A3 privileges. Projects must also integrate forming processes of at least 4 of the following: cylinder heads, cylinder blacks, crankshafts, camshafts, and connecting rods.
Production of vehicle parts
Thailand’s automotive industry is undoubtedly one of its largest sectors, contributing significantly to the country’s exports. This makes the production of vehicle parts a very important supporting industry in order to help automotive manufacturers meet both domestic and international demand. The Board of Investment has listed a number of parts that projects can produce in order to be eligible for privileges. They are listed accordingly, each having different sets of privileges.
BOI Privileges
Eligible for A2 privileges
Activities |
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The production of vehicle parts using hi-tech methods, including:
- Substrates for catalytic converters
- Electronic injection systems
- Automotive transmissions
- Electronic control units (ECUs)
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The production of vehicle parts using hi-tech methods, including:
- Substrates for catalytic converters
- Electronic injection systems
- Automotive transmissions
- Electronic control units (ECUs)
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Manufacturing safety and energy-saving parts, including:
- Anti-lock brake systems (ABSs) or electronic brake force distributors (EBDs)
- Electronic stability controls
- Regenerative brake systems
- Idling stop systems
- Autonomous emergency braking systems
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Production of parts for hybrid vehicles, electronic vehicles, or plug-in hybrid electronic vehicles, including:
- Batteries
- Traction motors
- Air-conditioners
- Battery management systems (BMS)
- Drive Control Units (DCUs)
- On-board charger
- EV connector
- Inverters
- Portable Electric Vehicle ChargersElectrical Circuit Breaker
- EV Smart Charging Systems
- Front/real axles for battery-powered electric buses
- Production of rubber tires
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Eligible for A3 privileges
Activities |
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Production of fuel system parts which include:
- Fuel pumps
- Injection pumps
- Injectors
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The production of the following parts must have either a parts-forming or assembly process that has been approved by the board:
- Fuel pumps
- Injection pumps
- Injectors
- Sun gears
- Transfer cases
- Torque converters
- Carriers
- Propeller shafts
- Drive shaft
- Universal joints
- Differentials
- Turbochargers
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The production of the following parts must have either a parts-forming or assembly process that has been approved by the board:
- Fuel pumps
- Injection pumps
- Injectors
- Sun gears
- Transfer cases
- Torque converters
- Carriers
- Propeller shafts
- Drive shaft
- Universal joints
- Differentials
- Turbochargers
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Manufacturing transmission system parts, such as:
- Sun gears
- Ring gears
- Transfer cases
- Shift gears
- Transfer cases
- Torque converters
- Carriers
- Propeller shafts
- Drive shafts
- Universal joints
- Differentials
- Transmission cases
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Production of parts for hybrid vehicles, electronic vehicles, or plug-in hybrid electronic vehicles, including:
- Batteries
- Traction motors
- Air-conditioners
- Battery management systems (BMS)
- Drive Control Units (DCUs)
- On-board charger
- EV connector
- Inverters
- Portable Electric Vehicle ChargersElectrical Circuit Breaker
- EV Smart Charging Systems
- Front/real axles for battery-powered electric buses
- Production of rubber tires
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