Thailand’s Cabinet has approved a 35% excise tax on imported battery electric vehicles (BEVs) and range-extended electric vehicles (REEVs), effective from 1 January 2027.

The decision implements resolutions passed by the National Electric Vehicle Policy Committee on 25 November 2025 and 10 September 2026.

According to a translated version of the press statement, the committee instructed the Excise Department to formulate policies stimulating domestic vehicle manufacturing and parts assembly.

Thailand Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas explained that the restructuring counters competition from imported models excluded from state incentive schemes, thereby equalising market conditions for local producers.

Beyond local assembly, the government expects the fiscal adjustment to sustain wider employment, skills development, and automotive supply chains.

The strategy rests on three core priciples: “Investment-Driven Import”, “Regional and Global EV Hub”, and “High Value-Added Local Content”.

These measures underpin the country’s shift from conventional vehicle manufacturing toward eco-friendly vehicle exports via a “Multi-Pathway” alternative-energy approach.

According to the latest data from Federation of Thai Industries, new vehicle sales in Thailand rose by more than 14% year-on-year to 55,255 units in September 2026, following growth of 24% to 48,350 units a year earlier,

Continued demand for BEVs drove the market higher, with BEV sales increasing by 90% year on year to 22,587 units. Pickup-truck sales declined by more than 7% to 10,315 units.

The overall Thai domestic vehicle market continued to recover last month, despite widespread flooding across the country, including in large parts of Bangkok, caused by heavy monsoonal rains.  

In the first nine months of 2026, Thailand’s domestic vehicle market expanded by 16% to 521,225 units, up from 447,969 units a year earlier.