In brief
Thailand will hike the excise tax on fully imported battery‑electric and range‑extended electric vehicles to 35% starting in 2027. The move, approved by the cabinet in Udon Thani, seeks to level competition with government‑subsidised local models and reinforce the country’s green‑vehicle supply chain, according to Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas.
On 3 November 2026, the Thai cabinet announced that the excise duty on fully imported battery‑electric vehicles (BEVs) and range‑extended electric vehicles (REEVs) will rise to the same level, 35 %, effective 1 January 2027, a steep increase from the previous 10 % and 15 % rates, respectively.
Battery‑electric vehicles operate solely on electric power from a battery pack that drives an electric motor; range‑extended electric vehicles pair a small internal‑combustion engine with a battery so that the car can be charged when the fuel dies, but otherwise runs on electricity. The term excise tax refers to a duty levied on specific goods, in this case the final import of these fully assembled cars.
The policy follows guidance from the National Electric Vehicle Policy Committee and the Finance Ministry, which say that higher duties aim to "protect the domestic auto industry and encourage investment in local EV production" by creating a fairer playing field for Thai‑made vehicles that receive government subsidies.
"The goal is to strengthen the production chain, create jobs for Thai workers, and upgrade their skills, positioning Thailand as a regional and global hub for green vehicle manufacturing," Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas told reporters at a cabinet meeting in Udon Thani.
The policy follows guidance from the National Electric Vehicle Policy Committee and the Finance Ministry, which seek greater local production of key vehicle parts amid increasing competition from imported cars not covered by government incentives.
Economists note that the hike will level the tax environment for imports with vehicles that benefit from stimulus programmes such as lower purchase taxes or rebates, allowing Thai manufacturers to compete without a cost advantage from the government.
Local automotive firms expect the tax change to boost demand for domestically assembled cars. By raising the cost of imported BEVs and REEVs, the government aims to stimulate investment in feeding factories—battery cell production, electric motor manufacturing, and final vehicle assembly—expected to increase employment and compel skill upgrades across the sector.
The move also represents a strategic effort to position Thailand as a regional green‑vehicle hub. By reinforcing the production chain and providing a clear regulatory environment, Thai authorities hope to attract foreign investors who can source components locally, lowering supply‑chain risk for global automakers.
Analysts predict that the new duty structure will drive a shift in the EV market toward Thai‑produced models, potentially raising the market share of local manufacturers and tightening the link between the national policies and the broader Southeast Asian automotive landscape.