Autos hub Thailand approves steep tax hikes on imported EVs

On Tuesday, Thailand's cabinet raised the excise tax on fully imported battery electric vehicles to 35% from 10%, effective from January, Finance Minister Ekniti Nitithanprapas announced. This increase extends to 35% for range-extended electric vehicles, up from the current 15%, according to Mr. Ekniti during a press briefing. In May, Thai auto industry groups had expressed concern over the industry's future without policy adjustments, citing challenges faced by local manufacturers in competing with cheaper imports from China.

The government aims to solidify Thailand's position as a production and export base while preserving jobs for Thai workers, stated Mr. Ekniti. The country serves as a significant regional hub for global automakers like BYD and Toyota Motor. Thailand's EV policy, which comprises tax incentives and subsidies, has attracted over $4 billion in investments, including those from Chinese companies BYD and Great Wall Motor.

As of August 2026, cumulative investment approvals in the electric vehicle ecosystem totaled $4.59 billion across 189 projects, according to the Board of Investment. In the first seven months of 2026, electric vehicles, hybrids, and plug-in hybrids represented 55% of Thailand's new-car registrations, marking the first time they surpassed combustion-engine vehicles, the Board of Investment reported.