Thailand’s EVAT backs new EV import tax as ‘correct first step’

BANGKOK, Nov 3 (TNA) - Thailand’s Electric Vehicle Association (EVAT) has voiced support for the government’s newly approved excise tax hike on imported electric vehicles (EVs), calling it a "correct first step" to protect local manufacturing and encourage foreign automakers to establish factories in the country.

The Cabinet recently approved an increase in excise tax rates for fully imported battery electric vehicles (BEVs) from 10% to 35%, and for range-extender electric vehicles (REEVs) from 15% to 35%, effective January 1, 2027.

Siamnat Panassorn, EVAT Vice President for Industrial Policy and Investment Support, said that the measure will help safeguard Thailand’s auto component supply chain and create a fairer environment for domestic production.

Despite Thailand housing seven operational EV production plants, imported vehicles accounted for 70% of the 190,000 EVs sold in the country between January and September 2026, with locally produced units making up just 30%, EVAT data showed. EVAT noted that some brands have produced only a single model locally to satisfy government incentive terms while continuing to import most of their lineup.

While the tax increase will make imported CBU (completely built-up) models more expensive—impacting major importers without local plants such as Tesla, Geely, Leapmotor, Zeekr, and Xpeng—EVAT emphasized that the policy is meant to incentivize investment rather than close market access.

Siamnat dismissed concerns about pre-tax price dumping, suggesting instead that importers might stockpile inventory before the 2027 deadline to sell at higher margins later. Prices for locally produced EVs will remain unaffected.

EVAT urged the government to follow up with stronger rules on local content definitions, advising a focus on strictly domestic "Thai Content" over Regional Value Content (RVC) rules to prevent automakers from circumventing duties via assembly in neighboring ASEAN nations. -819 (TNA)