Thailand EV Import Tax Rises to 35% From January

The Thailand EV import tax on fully imported battery electric vehicles will rise to 35% from 10%, after the cabinet approved the increase on Tuesday, November 3, Finance Minister Ekniti Nitithanprapas said, according to Reuters and the Bangkok Post. The higher rate is reported to take effect on January 1, 2027.

The excise tax on imported range-extended electric vehicles will also go up, to 35% from 15%. The change is part of a new tiered tax structure meant to encourage investment and local production.

Why the government is raising the tax

The higher rate targets completely built-up (CBU) EVs brought in by brands without a factory in Thailand. According to the Bangkok Post, the plan has two main goals:

• protecting carmakers that have already invested in Thai factories and supply chains;
• pushing brands that still rely on imports to speed up talks with the government on building local plants.

Mr Ekniti said the government wants to support Thailand as a production and export base and keep companies that employ Thai workers. In May, Thai auto industry groups warned that the sector faced a crisis without policy changes, as local manufacturers struggled to compete with cheaper imports from China, Reuters reported.

EV investment and sales keep growing

Thailand is a major regional hub for carmakers such as BYD and Toyota. Its EV policy, which also includes tax breaks and price subsidies, has drawn more than $4 billion in investment, including from Chinese firms BYD and Great Wall Motor. Board of Investment figures cited by Reuters show cumulative approvals in the EV ecosystem reached $4.59 billion across 189 projects as of August 2026.

Demand is rising fast. Figures from the Federation of Thai Industries (FTI), based on Department of Land Transport data, show:

• 22,587 new EVs and electric motorcycles registered in September, up 89.7% year on year;
• 19,425 passenger EVs in September alone, up 98.6%;
• 191,273 EV registrations in the first nine months, up 83%, including 167,789 electric passenger cars.

The FTI expects 200,000 to 220,000 registrations for the full year, compared with about 120,000 in 2025. EVs, hybrids and plug-in hybrids made up 55% of new-car registrations in the first seven months of 2026, overtaking combustion-engine cars for the first time. The country had 5,021 charging locations with 15,290 connectors by the end of September.

What buyers should expect

The new rate applies to fully imported models, so locally assembled EVs should not be directly affected. Buyers eyeing an imported model may see higher prices from next year, depending on how brands respond. Final retail prices will depend on each company's pricing decisions.

In Phuket, where EV taxis, rental cars and the new airport to Rawai EV bus are becoming more common, the policy could shape which models reach showrooms. Background: our earlier reports on how Thailand first eyed higher import taxes and how the government refined its EV support policy.

Photo: BYD booth at the 2023 Bangkok International Motor Show, by iMoD Official / Wikimedia Commons, CC BY 3.0.