Thailand approves 35% excise tax on imported EVs from 2027

Thailand’s cabinet has approved a rise in excise tax for fully imported electric vehicles to 35% from 10%, effective Jan. 1, 2027. The measures target automakers that import finished vehicles but have no manufacturing operations in the country.

Finance Minister Ekniti Nitithanprapas said imported range-extended EVs would face the same 35% rate, compared with 15% previously, Reuters reported. The changes are intended to support businesses with Thai factories and supply chains, and encourage import-reliant brands to pursue domestic production.

Industry groups warned in May that Thailand’s automotive sector faced a crisis unless EV policy changed, as domestic manufacturers struggled against cheaper Chinese imports. Bangkok Biznews reported that several Chinese carmakers supported higher import excise taxes, particularly those already assembling vehicles locally.

Sunhavut Thamchuanviriya, group chief executive and director of MGC-ASIA, said companies preparing to assemble vehicles from completely knocked-down kits were expected to accelerate their projects after official details emerged. He said businesses without local assembly plans would struggle to remain competitive.

Leapmotor is considering assembly in Thailand as part of its long-term commitment to the market, according to Liam Liu, general manager of Leapmotor (Thailand) Co. Ltd.

EV registrations reached 191,273 units during the first nine months of 2026, an increase of 83% year-on-year, the Federation of Thai Industries said, citing Department of Land Transport figures. The federation forecasts 200,000 to 220,000 registrations for the full year, against approximately 120,000 in 2025.