The Thai government is preparing to hike the excise tax on imported battery electric vehicles (BEVs) at the beginning of next year, to protect existing manufacturers and encourage investment in local production, according to reports.

Thailand’s Finance Ministry plans to hike excise duties on imported BEVs from the current 10% to “at least 30%” on 1 January 2027, the reports suggest. The move is also designed to encourage the development of local BEV supply chains, which have been struggling to keep pace with the recent surge in BEV sales in the country by Chinese brands.

Sales of battery electric vehicles (BEVs), including imported and locally assembled often with limited local content, more than doubled to 149,130 units in the first eight months of 2026, accounting for almost one-third of total vehicle sales in the country. Almost all of these were Chinese-branded BEVs.

Thailand is a major global production hub for pickup trucks, but local sales have plunged in the last few years, from over 388,000 units in 2022 to just 144,000 units in 2025.

Sales of BEVs are expected to surge in the final months of 2026 ahead of the tax hikes, as consumers rush into the market ahead of the expected price hikes. Significant buying activity is expected to take place at the Thailand International Motor Expo in Bangkok in December.