Bangkok:Thailand's Electric Vehicle Association (EVAT) has expressed its support for the government's newly approved excise tax increase on imported electric vehicles (EVs), describing it as a "correct first step" towards fostering local manufacturing and encouraging foreign automakers to set up factories in the country.
According to Thai News Agency, the Thai Cabinet recently approved an increase in excise tax rates for fully imported battery electric vehicles (BEVs) from 10% to 35%, and for range-extender electric vehicles (REEVs) from 15% to 35%, effective January 1, 2027.
Siamnat Panassorn, EVAT Vice President for Industrial Policy and Investment Support, stated that the measure aims to protect Thailand's auto component supply chain and promote a more equitable environment for domestic production. Despite having seven operational EV production plants, imported vehicles made up 70% of the 190,000 EVs sold in the country between January and September 2026, with locally produced units accounting for just 30%, as per EVAT data.
While the tax increase is expected to raise the cost of imported completely built-up models, impacting major importers lacking local plants such as Tesla, Geely, Leapmotor, Zeekr, and Xpeng, EVAT emphasized that the policy intends to incentivize investment rather than restrict market access. Siamnat dismissed concerns about pre-tax price dumping, suggesting that importers might stockpile inventory before the 2027 deadline to later sell at higher margins. Locally produced EV prices will remain unchanged.
EVAT also recommended that the government reinforce local content rules, advocating for a focus on strictly domestic "Thai Content" over Regional Value Content (RVC) rules to prevent automakers from avoiding duties through assembly in neighboring ASEAN nations.