Thailand raises excise rates for imported electric vehicles
The cabinet approved a 35% rate for fully imported battery EVs from January, replacing 10%, to encourage investment and local manufacturing.
Fully imported battery electric vehicles will attract 35% excise tax from January under a change Thailand’s cabinet approved on 3 November, Finance Minister Ekniti Nitithanprapas said. The current rate is 10%.
Ekniti told a briefing that imported range-extended electric vehicles would also attract a 35% rate, replacing 15%. He said the changes sought to encourage investment and domestic manufacturing, preserve Thailand’s production and export role, and retain businesses employing Thai workers.
Thai automotive industry groups warned in May that policy changes were needed to avert an industry crisis, with domestic manufacturers struggling against lower-priced Chinese imports. Thailand’s EV incentives, including tax concessions and purchase subsidies, have drawn investment from Chinese companies including BYD and Great Wall Motor.
According to the Board of Investment, cumulative approvals for investment across the EV ecosystem stood at US$4.59 billion, covering 189 projects, by August 2026. The board said EVs, hybrids and plug-in hybrids together made up 55% of new-car registrations over 2026’s first seven months, exceeding combustion-engine vehicles for the first time.
