Thailand

Last modification: 29 aoû 17
Introduction: 

Thailand, officially the Kingdom of Thailand and formerly known as Siam is a country at the centre of the Indochinese peninsulina in Southeast Asia. Thailand is the 50th largest country in the world and the 20th most-populous country. 

Chapter 1: Economic and business environment

Demographics

Around 66 million people.
Capital

Bangkok
Major cities

Samut Prakan,  Nonthaburi, Udon Thani, Chon Buri
Languages

Thai (th), English (en)
GDP

5,816.44 USD (2015)
Unemployment rate

0,9% in 2014
Main industries

GDP Composition by Sector:
- Agriculture (11.4 percent)
- Industry (43.9 percent)
Services (44.7 percent)

Industrial Production Growth Rate:
3.4 percent

Industries:
Electronincs, automotive
Currency

THB Thai baht
Interest rate

2,80%
Political key info

Thailand is constitutional monarchy and has switched between parialmentary democracy and military junta for decades.
Inflation

-0,4% in 2017

Chapter 2 : Automotive market, segments & sales

Total Car park

206 per 1000 inhabitants
New vehicle registrations (Cars, LCV, Trucks)

New Car Sales 2015 : 1,351,648
Model preference top 5 (total market)

Thailand best selling cars ranking in 2017 is dominated by the last generation of locally made Isuzu D-Max. 
Second is the Toyota Hilux and third by Ford Ranger.

Chapter 4: Taxation & legislation

4.1 Car Taxation Car taxes are calculated based on different parameters : cylinder capacity, weight, emission. Special vehicles are taxed otherwise (tractors, motor cycles, ..)
4.2 Income tax – Taxable persons Private use is considered as a benefit in kind and the market price of such services needs to be included in the employee's personal income tax return
4.3 Company car The private use of a company car by the employee is considered as a rental of the car by the company to the employee and therefore treated as provision of services for VAT purposes
4.4 Income taxes – drivers’ personal taxation Costs incurred for the private use of a company vehicle are not deductible of the personal income tax. Fuel cost, when paid by the company in excess of the Governement rate, is treated as a taxable benefit
4.5 Electric vehicles Lower taxation than combustible engine cars
4.6 Future developments Tax incentives for eco friendly vehicles
4.7 Legal background (import taxes) High custom duties and import VAT are due on imported vehicles
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Chapter 5: Car policies

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Chapter 6: Funding methods

Overview of penetration of funding methods (buy or lease statement) Leasing has become the prime methodology to provide employees with a company car. Deductibility and professional suppliers contribute to the preference for leasing
Type of suppliers (captive versus multibrand, international versus local…)  
6.1 Outright purchase:  
Definition Vehicle is registered as a fixed tangible asset on the balance sheet at the acquisistion value and depreciated over total useful economic life
Pro’s and con’s  
Economic & legal ownership Full ownership, included Risks asd Rewards
Business practices  
6.2 Renting (Finance lease) :  
Definition Tax law does not diffferenciate between operational and finance lease. Rentals paid are deductible of corporate taxation. However, a monthly maximum is applicable. Car related expenses are also deductible
Pro’s and con’s  
Economic & legal ownership Risks and Rewards are transferred to the lessee, legal ownership remains with the lessor
Business practices  
6.3 Full service leasing (operational leasing)  
Definition Tax law does not diffferenciate between operational and finance lease. Rentals paid are deductible of corporate taxation. However, a monthly maximum is applicable. Car related expenses are also deductible
Pro’s and con’s  
Economic & legal ownership Ownership remains with the lessor
Business practices  
6.4 Fleet Management  
Definition  
Pro’s and con’s  
Economic & legal ownership  
Business practices  
6.5 Short term rental  
Definition  
Pro’s and con’s  
Economic & legal ownership  
Business practices  
6.6 Other funding methods  
   
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Chapter 7: Fuel

Fuel type segmentation
To reduce vehicle pollution, Thailand has introduced many novel fuel mixtures. While these may be confusing to foreigners maybe even to locals the benefits outweigh the drawbacks and it's worth getting to know the available options. 
For starters it's not easy to find the regular old fashioned unleaded fuel. Instead you will see that Gasohol - a mixture of ethanol and gasoline - is the common fuel of Thailand and virtually all petrol vehicles and motorcycles will fill up with that. The only real fuel that you can find is octane 95.

As a rule of thumb, most pickup trucks and SUVs are Diesel, though more and more gasoline versions are becoming available. Saloon cars AKA sedans are in general E20 or Gasohol 95/91. One thing to mention is that all taxi's, tuk tuk, trucks, commercial minivans and busses must use gas (LPG, NGV, CNG) but still retrain the normal fuel tank so they can switch between fuel types when needed. 
Some cars have also been fitted with a LPG / CNG system and some come new with dual fuel systems, to cut down on pollution and to save money.

Fuel price evolution

Fuel infrastructure

Fuel card solutions

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Chapter 8 : TCO components

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Chapter 9: Safety, insurance and telematics

SAFETY
Thailand has the second highest rate of fatalities from road crashes. (44 fatalities per 100,000 people)
The figures are high because accidents involving buses and minivans are quite frequentand of course many people are involved each time.

INSURANCE

TELEMATICS

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Chapter 10: Environment

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Chapter 11: Mobility

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Chapter 12: Key trends to watch

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