According to a source cited by The Nation Thailand, BMW Thailand is in discussions with its parent company in Germany about producing electric vehicles (EVs) at its Rayong plant so that BMW EVs can take advantage of the government's subsidy and excise reduction package.
BMW Thailand is currently offering a few EV models that were imported from China and Germany.
BMW Thailand would have to enter into a contract with the government committing to producing EVs domestically instead of importing them to order to be qualified for a subsidy and import excise relief that could result in a price reduction.
The source, a top executive at BMW Thailand, claimed that discussions with the parent company about producing EVs at the Rayong factory of BMW Group Manufacturing Thailand are still ongoing.
The source also said that the business would be qualified for financial benefits from the Board of Investment if the BMW factory also produced electric vehicles (BOI).
The BOI has permitted automakers to file for tax benefits as EV producers in 2018. The tax incentive program for EV manufacturers, according to the BOI, is still open for application.
According to a BOI announcement, a manufacturer who spends at least Bt5 billion in the production of electric cars, motorcycles, tricycles, trucks, and boats will be exempt from corporate tax for eight years.
A three-year corporate tax exemption will be granted to the manufacturer if the investment worth is less than Bt5 billion. A 3 percent increase from 2020 to 2021 saw the BMW factory in Rayong produce 33,428 automobiles and motorbikes.
According to the source, BMW Thailand may be ready to begin producing EVs in 2023. The Rayong plant has been in operation for 20 years, and BMW has 31 factories across 15 nations.
BMW's corporate master revealed its intention to produce EVs in all of its product lines, including the X3 series, Series 5, 7, and X1. The business added that it would buy about 10 different EV versions over the next two years.
The Rayong factory may be able to produce some models as a consequence, according to the source, because the factories in Germany and China might not have enough space to complete the master plan.