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Thai Government Adjusts EV Import Taxes to Boost Local Production

Thai Government Adjusts EV Import Taxes to Boost Local Production

Khaosod•Economy•13m ago

Reader Briefing

The Thai Cabinet has approved an increase in excise taxes for imported BEV and REEV vehicles to 35% starting January 1, 2027.

  • •Import taxes for Battery Electric Vehicles (BEV) and Range Extended Electric Vehicles (REEV) will rise to 35% on January 1, 2027.
  • •The policy aims to shift Thailand from an EV market to a production and export hub.
  • •Automakers including Toyota, Mazda, MG, BYD, Geely, and XPENG are assessing the impact on their investment and production plans.
  • •The private sector is seeking clarity on Local Content requirements to plan long-term investments.

Overview

  • •The Cabinet approved adjusting excise taxes for imported Battery Electric Vehicles (BEV) and Range Extended Electric Vehicles (REEV) to 35% effective January 1, 2027.
  • •Ekniti Nitithanprapas stated the tax restructuring aims to create fair competition between imported and locally produced vehicles.
  • •The tax adjustment applies specifically to imported BEV and REEV under certain conditions, while Internal Combustion Engine, HEV, and PHEV vehicles remain under their existing tax rules.
  • •Supakorn Rattanavaraha of Toyota Motor Thailand suggested import ceilings or quotas to prevent a surge of imports before January 1, 2027.
  • •BYD has already assembled 100,000 new energy vehicles across 5 models at its plant in WHA Industrial Estate, Rayong.
  • •XPENG has planned a three-phase response including managing imports during the transition and studying the establishment of an EV factory in Thailand.
  • •The private sector emphasizes that without clear Local Content criteria, operators will find it difficult to evaluate investment costs and returns.

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Key Entities

Person

Ekniti Nitithanprapas(เอกนิติ นิติทัณฑ์ประภาศ)ℹ️
Deputy Prime Minister and Minister of Finance.
Supakorn Rattanavaraha(ศุภกร รัตนวราหะ)
Senior Executive Vice President of Toyota Motor Thailand Co., Ltd.
Thee Permpongpan(ธีร์ เพิ่มพงศ์พันธ์)
President and CEO of Mazda Sales (Thailand) Co., Ltd.
Chatwithai Tantraphorn(ฉัตวิทัย ตันตราภรณ์)
Vice President of MG Sales (Thailand) Co., Ltd.

Organization

Cabinet(คณะรัฐมนตรี)
The government body that approved the adjustment of excise taxes for imported BEVs and REEVs.
Toyota Motor Thailand Co., Ltd.(บริษัท โตโยต้า มอเตอร์ ประเทศไทย จำกัด)
An automotive company concerned about the transition period of the new tax policy.
Mazda Sales (Thailand) Co., Ltd.(บริษัท มาสด้า เซลส์ (ประเทศไทย) จำกัด)
An automotive company supporting the upgrade of Thailand's production base.
MG Sales (Thailand) Co., Ltd.(บริษัท เอ็มจี เซลส์ (ประเทศไทย) จำกัด)
An automotive company with 80-90% of its sales coming from vehicles produced in Thailand.
BYD
An automotive company with a factory in WHA Industrial Estate, Rayong, that has assembled 100,000 vehicles.
GEELYℹ️
An automotive company awaiting clarity on tax rates for producers with local factories using different levels of Thai parts.
XPENGℹ️
An automotive company planning a three-phase approach to the tax changes, including studying a local factory.

Place

WHA Industrial Estate, Rayong Province(นิคมอุตสาหกรรมดับบลิวเอชเอ จังหวัดระยอง)
The location of the BYD assembly plant.