Industry Urges Swift EV Tax Decision Amid Price War Concerns
Thai automotive industry urges swift clarification of electric vehicle import tariffs, which could range from 10% to 30%, as unclear policy sparks consumer panic buying and inventory buildup ahead of potential price increases.
The Federation of Thai Industries has urged the National Electric Vehicle Policy Board to swiftly clarify import tariffs on electric vehicles, which remain unconfirmed at any level between 10%, 20%, or 30%. Vice-President Suwat Supakanchanechaakul noted that no official conclusion has been reached on raising EV import taxes to 30%, and multiple factors must be considered before a final decision is announced. The unclear policy is causing market disruption, with consumers rushing to buy vehicles before any tariff hike and automakers accelerating imports to build inventory ahead of potential price wars and promotional campaigns. The 30% figure is one of ten options proposed by automotive associations to level the playing field between imported and domestically-produced vehicles. Alternative approaches would differentiate tax rates based on investment levels, production volume, and domestic value creation to incentivize manufacturers to expand local production and increase use of Thai-made components. Following the board's September 10 decision, the industry awaits formal tariff announcements and plans to discuss local content requirements and import quotas tied to economic value created in Thailand. The industry also stressed that the government should be selective when granting investment incentives, particularly for new entrants who do not establish local factories, and should require investor protections and consumer remedies if operations cease. During the first eight months of this year, vehicle production and domestic sales have recovered while exports declined, with pickup truck sales down 63% from last year—a critical concern given that pickup trucks account for over 90% domestic component sourcing at some brands. The industry has called for immediate government stimulus measures to sustain production capacity and competitiveness in the pickup truck segment, Thailand's automotive flagship, and asked for coordination on a long-term supply chain strategy to support the country's economic growth targets over the next twelve years.
