Thailand is likely to introduce an excise tax of about 30% on fully imported electric vehicles (EVs) as it seeks to encourage carmakers to manufacture locally.
Speaking to Bloomberg Television, Finance Minister Ekniti Nitithanprapas said the authorities are working with the automotive industry to agree a final rate, with a decision expected as soon as this month.
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When questioned on whether the rate might land between 31% and 32%, he said it “should be around” 30%.
The planned tax would mark a change from Thailand’s previous EV policy, which had low import barriers and resulted in increased arrivals of lower-priced Chinese vehicles.
According to the minister, the measure is intended to support domestic investment and strengthen local supply chains.
Ekniti said nine EV manufacturers have established operations in Thailand, with several already exporting vehicles made in the country.
The government has identified EVs as one of seven priority industries in the next stage of its economic development plans.
The move follows provisional approval last week by Thailand’s EV policy board of a three-tier excise duty structure.
Under the proposed framework, fully imported vehicles would face the highest tax rate, vehicles made entirely in Thailand would be subject to the lowest rate, and locally assembled vehicles using imported components would fall into a middle band.
Ekniti said protecting domestic investment was important, adding that Thailand’s free-trade obligations mean it cannot directly change tariffs, leaving excise taxes as the main mechanism for supporting manufacturers based in the country.
He also said some carmakers currently importing vehicles from China and Europe have started talks with the government about establishing manufacturing operations in Thailand to qualify for lower tax rates.
According to GlobalData, Just Auto’s parent, Thailand remains Southeast Asia’s top vehicle production hub, supported by its export base, Japanese OEM presence, policy backing for xEVs and growing EV investment, despite facing weaker domestic sales and export pressures.
EV production there is forecast to rise strongly, with the biggest step-ups expected in 2027 and 2029, GlobalData says.
