Thailand approves steep tax hikes on imported EVs

Thailand's cabinet on Tuesday approved an excise tax increase on fully imported battery electric ‌vehicles to 35% from 10% starting January, Finance Minister Ekniti Nitithanprapas said, a move aimed at encouraging investment and local production.

Excise tax on imported range-extended electric vehicles would also be increased to 35% from 15%, Mr Ekniti told a briefing.

In ‌May, Thai auto industry groups warned the industry faced a crisis without changes to EV policy, as local manufacturers struggled to compete with cheaper imports from China.

The government wants to support Thailand as a production and export base, while retaining firms that employ Thai workers, Mr Ekniti said.

Thailand is a major regional hub for car manufacturers such as BYD and Toyota ‌Motor.

Thailand's EV policy, which also includes tax breaks and price subsidies, has attracted more than $4 billion in investment, including from Chinese firms BYD and Great Wall Motor.

Cumulative investment approvals in the electric vehicle ecosystem reached $4.59 billion across 189 projects as of August 2026, according to the Board of Investment.

EVs, hybrids and plug-in hybrids accounted for 55% of Thailand's new-car registrations in the first seven months of 2026, surpassing combustion-engine vehicles for ‌the first time, it said.