In brief
Thailand’s cabinet announced a 35 % excise tax on fully imported battery‑electric and range‑extended electric vehicles effective 1 January 2027. The measure replaces the current 10 % and 15 % rates, and is intended to protect the local auto industry, strengthen the supply chain, and create employment.
In a cabinet meeting held in Udon Thani on 3 November 2026, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced that Thailand will raise the excise tax on imported battery‑electric vehicles (BEVs) and range‑extended electric vehicles (REEVs) to 35 % effective 1 January 2027.
The new excise rates replace the current 10 % rate for BEVs and the 15 % rate for REEVs, boosting the tax burden on fully imported electric cars by 25 percentage points.
BEVs are vehicles that operate solely on battery power and electric motors, while REEVs combine fuel and electric power, can be plugged in, but are driven only by electric motors.
Details of the Tax Hike
Minister Nitithanprapas said the cabinet approved the change after guidance from the National Electric Vehicle Policy Committee and the Finance Ministry. The policy is intended to protect Thailand’s domestic auto industry and to encourage investment in local EV production.
With the higher tariff, Thai manufacturers will gain a competitive advantage on local cars, as imported vehicles will no longer receive the incentives that currently make them attractively priced.
The measure also seeks to strengthen the production chain, create jobs for Thai workers, upgrade their skills, and position Thailand as a regional and global hub for green vehicle manufacturing.
Under the new tariff regime, the government expects that the forced shift toward local production will benefit the entire supply chain, from parts suppliers to assembly plants.
Deputy Prime Minister Nitithanprapas noted that the policy will help support a swift transition to a low‑carbon vehicle fleet while ensuring that Thai consumers and businesses enjoy locally produced, competitively priced electric cars.
Effective 1 January 2027, the 35 % excise tax will apply to all fully imported BEVs and REEVs, including vehicles that are registered in Thailand’s national vehicle registry but built abroad.
Industry analysts say that the policy will bring Thai auto manufacturers closer to regional supply‑chain integration and could help attract foreign investment in local production facilities.
While the policy focuses on imported EVs, Thai domestic producers are expected to benefit when their vehicles compete on a level playing field with foreign imports.
Overall, the tax hike reflects Thailand’s strategy to transform the country into a leading green vehicle manufacturing hub in Southeast Asia.