Thailand will raise excise tax rates on fully imported battery electric and range-extended electric vehicles to 35% from January 2027 to encourage local vehicle production and protect domestic manufacturers from cheaper imports.
The Thai cabinet approved an increase in the excise tax on fully imported battery electric vehicles to 35% from 10% on 3 November 2026, effective January 2027, Finance Minister Ekniti Nitithanprapas said.
Ekniti also said the excise tax on imported range-extended electric vehicles would also rise to 35% from 15%.
The minister said the government wants to support Thailand as a production and export base while keeping firms that employ Thai workers in the country.
The decision follows a warning in May from Thai auto industry groups that the sector faced a crisis unless EV policy was overhauled. Local manufacturers, they said, were struggling to compete with cheaper imports from China.
The higher excise rates are expected to shift the balance towards locally built vehicles as the new tax structure takes effect in the new year.
