Thailand Sets 35% EV Import Tax to Spur Local Production
Thailand will raise import tax on non-locally produced EVs to 35% from January 2027. The move aims to boost domestic manufacturing and protect local auto jobs.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira revealed that the mobile Cabinet meeting in Udon Thani approved an increase in excise tax on imported electric vehicles (EVs) that are not manufactured in Thailand and do not use local parts, from 10% to 35%, and on motor-driven electric vehicles from 15% to 35%, effective January 1, 2027. The policy aims to support Thailand becoming an EV production and export base rather than just an import market, while ensuring fairness for operators who have invested in domestic factories, employed Thai workers, and built continuous automotive supply chains. Rapid technology shifts have left domestic producers facing unfair competition from imports, prompting the government to restructure taxes to protect existing operators vital to the economy and employment, while incentivizing new investment. The Customs Department has been tasked with negotiating special tax rates for interested new investors, several of whom have already expressed interest in expanding production in Thailand. The government intends to use tax measures to stimulate genuine domestic investment, boost production capacity and export opportunities, and maintain the long-term competitiveness of Thailand's automotive industry. Simultaneously, the tax hike aims to preserve the Thai automotive supply chain — comprising parts manufacturers, SMEs, and a large workforce, especially those in the traditional internal combustion engine sector — enabling them to transition steadily to EV production. The government seeks to balance attracting new investors with protecting existing ones so that the shift to EV technology benefits the Thai economy across investment, employment, domestic parts development, and elevating Thailand to a key regional EV production hub.
