Thailand’s Cabinet approved a 35% excise tax on imported battery-electric vehicles (BEVs) and range-extended electric vehicles (REEVs) beginning Jan. 1, 2027, as it seeks to draw more vehicle and parts production into the country.
The decision came at a Nov. 3 meeting in Udon Thani. The current excise rate is 10% for BEVs and 15% for REEVs. The government describes REEVs as rechargeable vehicles that use fuel and electricity but are driven by electric motors.
The government says the change responds to competition from imported vehicles outside its support schemes and is intended to attract investment in Thai vehicle production and key parts assembly. It says greater local output could support jobs, strengthen supply chains and increase the use of higher-value Thai parts.
Thailand's Public Relations Department said the Excise Department estimates the measure could add about 3.5 billion baht to motor-vehicle excise revenue. The department also said receipts could decline if domestic production expands, which is one of the policy's aims.
The Cabinet announcement did not specify how the new rate applies to imports by automakers that already manufacture vehicles in Thailand. An earlier framework from Thailand Board of Investment (BOI), agreed in principle, allowed companies with Thai assembly plants to bring in selected models for testing. Their import volumes were tied to the local economic value they generated in the previous year, but the framework does not set the final tax treatment. The approval follows an earlier proposal to raise taxes on selected imported EVs.
New BEV registrations totaled 191,273 across vehicle categories in the nine months through September, the Federation of Thai Industries (FTI) reported. That was 83.03% above the corresponding period in 2025.
The effect on automakers and buyers has not been confirmed. The Nation reported that an unnamed Chinese automaker executive estimated retail prices for some imported models could rise by as much as 10%; the Cabinet announcement did not give a price forecast.
The Nation also reported that Thai officials are expected to explain the policy to automakers during an investment roadshow in Japan on Nov. 18-20.
