Industry Ministrer M.R. Pongsvas said the Board of Investment of Thailand (BoI) had agreed at the beginning of August 2012 to revamp investment privileges for big bikes, allowing 250cc production to enjoy the same privileges as +500cc motorcycles.

The approval is part of a government policy to promote Thailand as a hub for building large motorcycles.

Pity, the decision comes a bit late – Triumph has already decided to open a new factory in India instead of expensing its Chonburi operation, and Kawasaki has decided to also start producing the 2013 Kawasaki Ninja 250R in Indonesia.

So with the only two motorcycle manufacturers, which also build big bikes, looking for alternative locations for manufacturing the idea for Thailand to become a hub for building large motorcycles is more a dream.

Sorry, but I do not understand this article as it is written.
Can you please give more detail?
Thank you.

Quote by: David

Sorry, but I do not understand this article as it is written.
Can you please give more detail?
Thank you.

Without going into to much details, before it was like this - any motorcycle produced in Thailand which was between 250cc and 500cc was in a sort limbo land, they didn't qualified for any benefits to make producing them in Thailand attractive.

The motorcycle industry is really pushing (especially Honda) as they are investigating to shift the production of some 400cc motorcycles to Thailand. Of course Kawasaki, which was fully depended on its Thai production facility for its Ninja 250R was also demanding that motorcycles below 500cc would benefit from special BOI benefits...

Triumph was fast they didn't see any change soon and moved to India, as they also saw more potential in the Indian domestic market for 250 to 500cc motorcycles.

But for now it's only 250cc that's now included in the BOI investment privileges plan, anything bigger than 250cc and smaller than 500cc are still excluded so we not have to expect any 400cc production in Thailand soon. It will just cost more to produce them in Thailand than it will to keep production in Japan...

I wonder how the benefits will translate in the price of the Honda CBR250R?

Under the Big-Bike, 4-Stroke Engine Motorcycles over 500cc BOI scheme, a minimum annual production capacity is not be required, whereas motorcycles produced outside the scheme are set at 50,000 units/year or more.

There are also no restrictions on foreign ownership for the production facility, compared to a minimum of 60% Thai ownership previously required. Regardless of the plant locations, big-bike motorcycle manufacturing activities will be eligible for exemption from import duties on machinery.

For projects that include engine manufacturing starting from machining key parts, such as cylinder heads and crank cases, the corporate income tax holiday may be extended for 3 to 8 years depending on the plant location.