You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

February 13, 2025

Thailand Updates Contract Controls on Vehicle Purchase Reservations

Subscribe to Updates

The Contract Committee of Thailand’s Office of the Consumer Protection Board has issued a notification updating the stipulation that any sale of a new vehicle or motorcycle requiring an upfront deposit from the consumer for reservation purposes is now classified as a contract-controlled business. Titled “Requiring Reservation Agreements for New Vehicles and Motorcycles to be Contract-Controlled Businesses B.E. 2567,” the notification takes effect on February 19, 2025, and supersedes the previous notification from 2008, which applied only to “vehicles” (excluding motorcycles).

Key changes and requirements introduced by the new notification include:

  • Inclusion of electric vehicles and motorcycles. The notification now extends beyond traditional vehicles powered by combustion engines to include those powered by electricity. It also covers motorcycles powered by both combustion engines and electricity.
  • Definition of order deposit. An order deposit is defined as any money or benefit provided by the consumer to reserve a vehicle or motorcycle. It is distinct from a security deposit and is solely for reservation purposes.
  • Standardized order deposit agreement. Order deposit agreements must be in Thai and clearly visible and readable. Business operators must use the template prescribed by the notification to ensure compliance with the standardized terms and conditions. This extends to both physical and electronic agreements and includes transactions facilitated by digital platform providers.
  • Specification of delivery date. Agreements must specify the exact date, month, and year for delivery, unlike the previous requirement for only an estimated delivery date.
  • Detailed deposit collection description. Agreements must outline the method of deposit collection, providing more specificity than the general description required previously.
  • Prohibited terms. Agreements must not include:
    • Limitation or exclusion of liability for the business operator’s faults.
    • Provisions allowing the business operator to change the delivery date or conditions to the consumer’s detriment.
    • Provisions allowing the business operator to terminate the agreement without the consumer’s fault or breach of material terms.
    • Provisions allowing the business operator to forfeit the deposit, unless the consumer defaults.
    • Provisions allowing the business operator to store, collect, use, or disclose personal data not in compliance with personal data protection laws.

With the new notification coming into effect, business operators must review and update their order deposit agreements and assess their marketing and sales practices to ensure compliance.

Related Professionals

Industries

Automotive

Location

RELATED INSIGHTS​ 

January 12, 2022
Thailand’s Board of Investment (BOI) recently published BOI Notification No. Sor. 8/2564, which extends the scope of investment promotion covering electronic vehicle (EV) industry manufacturers to include the production of “automotive platforms” for electric vehicles, and creates a new category of BOI promoted activities covering the manufacture of electric bicycles (E-bikes). Automotive Platforms The following investment promotion categories have been extended: 4.24 – Manufacture of Battery Electric Vehicles 4.26 – Manufacture of Electric Battery Tricycles 4.27 – Manufacture of Electric Battery Busses and Trucks These categories now include the manufacture of “automotive platforms”—which must include an energy storage system, charging module, and front and rear axle module—benefiting from similar tax incentives and subject to additional conditions, as detailed below. New BOI Promotional Category for E-Bike Production The BOI has also introduced a new category, No. 4.28, covering the manufacture of E-bikes. Projects under this category will be eligible for a three-year CIT exemption with an additional one-year exemption if certain criteria are met. Applications for this category must cover the manufacture of E-bikes, the manufacture or sourcing of electric batteries, and a management plan for used batteries. In addition to the general conditions for EV projects (industrial standards, manufacturing timelines, etc.), the BOI has also imposed the following conditions specific to E-bike projects: E-bike frames must be produced from light-weight materials such as aluminum alloy, chromium–molybdenum alloy steel (chrome moly), titanium alloy, and carbon fiber; and E-bike batteries must adopt environmentally-friendly technology. Interestingly the BOI allows E-bike production lines to jointly use manufacturing lines for ordinary bicycles. However, the sale of ordinary bicycles is regarded as non-BOI-promoted income and will not be entitled to BOI tax incentives. These new provisions, intended to stimulate both local and foreign investments in the electric automotive industry, seem to complete the BOI promotion
Read More
January 14, 2019
When Vietnam began to open its market in the late 1980s, there were few cars on its roads. Over time, as the country’s economy entered a period of rapid growth, the number of cars grew accordingly. While that number has steadily risen, car ownership in Vietnam is still low by world standards, with only about 23 cars per 1,000 people. However, that rate is only expected to increase in the coming years as per capita income continues to rise.
Read More