Thailand plans higher taxes on fully imported electric cars to boost local production
Thailand's EV board will raise excise duties on fully imported electric vehicles, while offering lower rates for locally assembled or domestically produced models.
Thailand's electric vehicle board has agreed to lift the excise tax on fully imported electric cars above the existing 10 percent level, aiming to encourage domestic manufacturing. Lower taxes will apply to vehicles brought in for testing and to those imported for local assembly, while cars produced with Thai parts will enjoy the smallest rate. Officials said a grace period will be provided to help automakers adjust, though the duration has not yet been set.
Finance Ministry Permanent Secretary Lavaron Sangsnit indicated that the exact rates will be finalized by month-end. The move comes as EVs, hybrids and plug-in hybrids made up 55 percent of new car registrations in the first seven months of 2026, the first time they have outpaced conventional engines. Board of Investment head Narit Therdsteerasukdi stressed the need to turn strong consumer demand into long-term investment, local technology and quality jobs.
How this was covered
- The two sides describe this in almost entirely different words
Why it matters
Higher import taxes aim to grow Thailand's domestic EV industry and create local jobs.
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