BANGKOK, Thailand – Electric vehicle prices in Thailand are set to rise for imported models after the National Electric Vehicle Policy Committee approved a new excise-tax structure that links taxation to the value automakers create inside the country, with higher taxes imposed on manufacturers without local production facilities.

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The preliminary approval, granted on 10 September 2026, introduces four distinct approaches to EV taxation based on the degree of manufacturing presence and value added within Thailand. Vehicles imported by companies lacking local plants will face steeper excise duties, a deliberate move to push automakers toward establishing production bases in the kingdom and investing in domestic manufacturing capabilities, jobs and technology.

While specific rates remain pending, manufacturers with Thai plants will gain operational flexibility, including the option to import certain models for market testing before committing to full-scale domestic production. This allows companies to gauge consumer interest and preferences before investing further, ensuring a more strategic and adaptive manufacturing process, and forms part of a broader effort to attract more automakers to set up operations in the country.

The overhaul marks a significant shift in Thailand’s EV strategy, aligning tax incentives with local manufacturing as the country pursues its long-term ambition of becoming a regional EV hub. By tying tax benefits to domestic production, the government aims to stimulate job creation, drive technological innovation and strengthen economic growth, while also reducing reliance on fully imported vehicles, particularly those from China, which currently account for the majority of EVs sold in Thailand.

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Industry observers expect the new structure to gradually reshape the market, with locally produced models gaining a price advantage over imports and consumers likely to see adjustments in showroom pricing as the framework takes effect.

-Thailand News (TN)