Thailand Board of Investments Supporting Big Motorbike Manufacturing

Thailand Board of Investments Pushing for Growth of Motorcycle Manufacturing Sector
Thailand Board of Investments Pushing for Growth of Motorcycle Manufacturing Sector



The Thailand Board of Investment (BOI) unveiled the Government’s Super Cluster Policy. The policy underpins growth in the Thailand’s manufacturing industries. One of the growing sectors supported by the policy is the motorcycle manufacturing industry.

Classified as a mature manufacturing market for motorcycles, Thailand is home to seven of the world’s largest motorcycle producers, which include Suzuki, Honda, Yamaha, BMW, Ducati, Kawasaki, and Triumph. These seven foreign motorcycle manufacturers have a combined production capacity of over 2.67 million units per year.

Many of Thailand’s Big Bike producers are clustered in the Central and Eastern regions of the country,while close to their supply chains and seaports, as many of these vehicles are exported throughout Southeast Asia. Thailand generates between 90 per cent and 95 per cent of the components used in manufacturing these motorcycles, which underscores the strength and depth of the Thai supply chain.

Furthermore, Thailand’s outputs have grown from 3,997 per month to 5,866 units per month, increasing at a rate of 46.7 per cent. A rather aggressive growth while compared to more mature markets. It is basically because of its natural demographic/economical structure

Tax incentives under the Super Cluster Policy include:

  • 8-year corporate income tax exemption and an additional 5-year reduction of 50%;
  • Import duty exemption on machinery;
  • Import duty exemption on raw materials and components for re-export products;
  • For future industries with significant importance, the Ministry of Finance will consider granting a 10 to15 -year
  • corporate income tax exemption;
  • Personal income tax exemption for specialists working in specified areas
  • & more

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