Thailand sharply raises excise tax on imported electric vehicles to 35%

what happened

Thailand's cabinet on Tuesday approved raising the excise tax on fully imported battery electric vehicles to 35% from 10%, starting in January, Finance Minister Ekniti Nitithanprapas said at a briefing. The move is intended to draw investment into local production. Excise on imported range-extended electric vehicles will also rise, from 15% to 35%, Reuters reports.

Thai auto industry groups had warned in May that the sector would face a crisis without changes to EV policy, since local makers were struggling against cheaper Chinese imports. The government says it wants to keep Thailand as a production and export base and retain firms that employ Thai workers.

Thailand remains a major regional hub for carmakers including BYD and Toyota Motor Thailand. According to the investment board, cumulative approvals in the EV ecosystem reached $4.59 billion across 189 projects as of August 2026. EVs, hybrids and plug-in hybrids made up 55% of new-car registrations in the first seven months of 2026, overtaking combustion-engine vehicles for the first time.

why it matters

For markets this signals a policy shift in one of Southeast Asia's main car-producing countries. Importers of Chinese electric vehicles, including BYD and Great Wall Motor, will face a noticeably heavier tax burden, while locally assembled models gain a more protected position.

market impact

Chinese EV makers and importers: higher taxes reduce the competitiveness of imported cars in Thailand

tags

instruments