Thailand to Raise EV Import Tax to 30% on Imported Cars
Thailand’s Finance Ministry is preparing to ask the Cabinet to raise the import tax on fully built electric vehicles from 10% to at least 30%, effective Jan 1 2027. The move aims to protect domestic automakers that have invested in local factories and to encourage importers to set up production in Thailand. Vehicles assembled in the country will keep their current prices, while fully imported EVs will become significantly more expensive.
The Finance Ministry says it will present the excise tax increase to the Cabinet within two weeks. The higher tax would apply only to electric vehicles that are imported as completely built units with no locally manufactured parts.
Currently the tax on such vehicles is about 10 percent; the proposal calls for a minimum of 30 percent. The goal is to shield car makers that have set up plants and supply chains in Thailand and to push importers to establish local production.
The new rate is expected to become effective on January 1, 2027. An example given in the report shows that a 1‑million‑baht EV now incurs a 100,000‑baht tax; under the 30‑percent plus rate the price would rise by at least 200,000 baht, prompting buyers who want the lower rate to purchase before the end of this year.
Electric vehicles assembled in Thailand will keep their current prices and will not be affected by the tax change.
Thailand’s electric‑vehicle strategy began four or five years ago to avoid losing its position as a regional automotive hub. Through the EV 3.0–3.5 measures the government attracted eight major Chinese EV manufacturers to build factories in the country for domestic sales and export to Malaysia, Japan and Australia.
Moving into the next phase, authorities say they need proactive steps to safeguard the long‑term investment climate. Part of the tax reform will overhaul the local‑content calculation, using the excise tax as a lever under the ‘Made in Thailand’ standard and shifting the basis from profit, labor and electricity costs to high‑tech components.
The tax structure will have three tiers: a low rate for makers with full local parts, a medium rate for those with factories but high reliance on imported parts, and a high rate for vehicles that are completely imported with no domestic plant.
Going forward, excise taxes will be based on CO₂ emissions rather than technology type, so low‑emission vehicles — whether battery electric, range‑extended electric or hybrid — will receive lower rates to encourage truly clean mobility.
Officials reject the criticism that the increase favors Japanese automakers, saying it follows a pre‑planned roadmap: attract investment, develop a supply chain, set local‑content thresholds, and then apply protective measures.
They describe the overhaul of the EV excise tax as a key step for Thailand to upgrade its automotive industry toward genuine production under the Made in Thailand banner, thereby strengthening confidence and preserving its status as a regional automotive hub.
