BANGKOK, Thailand – Thailand’s Cabinet has approved a higher excise tax on imported battery electric vehicles (BEVs) and range-extended electric vehicles (REEVs), raising both rates to 35% from January 1, 2027. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the new rate will replace the current 10% tax on BEVs and 15% on REEVs. The change follows resolutions by the National Electric Vehicle Policy Board in November 2025 and September 2026.
The measure aims to encourage automakers to invest in local production and assembly, including the manufacture of key vehicle components in Thailand. It is also intended to address growing competition from imported vehicles that do not participate in government incentive programmes.
Ekniti said the revised tax structure is designed to attract investment through imports, position Thailand as a regional and global hub for environmentally friendly vehicle exports, and increase the use of higher-value locally manufactured components.
The government aims to reinforce the domestic automotive supply chain, create jobs and develop Thai workers’ skills while supporting the industry’s transition from conventional vehicle manufacturing to electric and other alternative-energy technologies. The policy also follows a multi-pathway approach, allowing different forms of alternative vehicle technology to contribute to Thailand’s future automotive industry. The Finance Ministry said the changes are intended to create fairer competition for vehicles manufactured in Thailand and encourage investment across the domestic automotive and parts industries.
