Imported EVs in Thailand Could Cost ฿200,000 More

Imported EVs in Thailand Could Cost ฿200,000 More

BANGKOK, October 20, 2026 — Thailand’s Finance Ministry is preparing to raise excise tax on fully imported electric vehicles (EVs) to at least 30% from January 1, 2027, a move that could increase the price of some imported models by at least ฿200,000 and encourage automakers to manufacture vehicles locally.

The proposal, which is expected to be submitted to the Cabinet within two weeks, would apply to completely built-up (CBU) electric vehicles imported without local assembly or locally manufactured components, according to a ministry source.

The planned tax increase is intended to support manufacturers that have invested in Thai factories and supply chains while encouraging brands that depend on imported finished vehicles to establish production facilities in the country.

Imported EV Prices Could Rise by ฿200,000

Under the current system, electric passenger vehicles that do not qualify for preferential treatment face a 10% excise tax, while eligible models can receive a reduced rate of 2%.

Under the proposed changes, the highest rate for fully imported EVs would rise to at least 30%.

For an imported EV priced at ฿1 million and currently subject to the 10% rate, the excise duty would amount to approximately ฿100,000. At a rate of 30%, the duty would reach ฿300,000, representing an increase of ฿200,000.

The final impact on retail prices would depend on the tax structure ultimately approved and how manufacturers adjust their pricing.

The ministry source stressed that the proposed increase targets imported finished vehicles rather than domestically produced EVs that meet the applicable qualifying conditions.

Thailand Pushes Automakers Towards Local Production

Thailand introduced EV incentives under its EV 3.0 and EV 3.5 programmes, allowing participating manufacturers to import vehicles while requiring them to offset those imports through domestic production.

Under the EV 3.5 programme, participating companies must produce two locally manufactured vehicles for every imported vehicle in 2026. The requirement will increase to three locally produced vehicles for each imported vehicle in 2027.

The National Electric Vehicle Policy Committee agreed in principle in September to restructure vehicle excise taxation around five principles, including domestic investment, high-value local content and fair competition.

The Board of Investment (BOI) said the framework would link tax rates to the economic value created in Thailand through investment, local assembly, supply-chain integration and skilled employment.

Local Components and Emissions to Influence Tax Rates

The proposed system would place greater emphasis on high-technology components manufactured in Thailand rather than relying primarily on production costs such as labour and electricity.

Manufacturers operating Thai factories and using substantial amounts of locally produced components would qualify for the lowest rates. Companies assembling vehicles locally but relying heavily on imported parts would face intermediate rates, while fully imported vehicles from brands without Thai production would face the highest rates.

Existing BOI incentives already require Made in Thailand certification for additional local-content benefits. Battery-electric vehicles must meet a 40% local-content threshold, while plug-in hybrid vehicles must reach 45%.

Over time, carbon dioxide emissions and domestic economic value are also expected to play a greater role in determining excise rates. Lower-emission battery-electric, range-extended electric and hybrid vehicles could all qualify for lower rates.

EVs and Hybrids Account for More Than Half of New-Car Market

Electric and hybrid vehicles accounted for 55% of Thailand’s new-car market during the first seven months of 2026, according to the BOI.

The Finance Ministry source rejected claims that the proposed tax restructuring was designed to favour Japanese automakers, describing it instead as part of a longer-term strategy to attract investment, promote technology transfer and create jobs.

“The excise tax restructuring is an important step towards genuine vehicle production under the Made in Thailand standard,” the source said.

The proposal remains subject to Cabinet consideration, with the planned January 1, 2027, implementation date depending on the final policy decision.