Imported range-extended electric vehicles will also face a 35% excise tax, up from 15%, Finance Minister Ekniti Nitithanprapas told a recent briefing, according to Reuters.

The measures target completely built-up EVs brought in by automakers without manufacturing operations in Thailand. They aim to protect companies that have invested in local factories and supply chains while encouraging import-dependent brands to accelerate discussions on establishing production in the country.

Thailand is a major regional manufacturing and export hub for automakers including China’s BYD and Japan’s Toyota Motor.

Visitors look at a LEXUS IS 300h electric car on display at the 47th Bangkok International Motor Show 2026 in Nonthaburi, on the outskirts of Bangkok, Thailand, on March 28, 2026. Photo by NurPhoto via AFP

In ⁠May, Thai auto industry groups warned the industry faced a crisis without changes to EV policy, as local manufacturers struggled to compete with cheaper imports from China.

Several Chinese automakers, particularly those already assembling vehicles in Thailand, support higher excise taxes on imported electric vehicles, according to Bangkok Biznews.

Sunhavut Thamchuanviriya, group chief executive and director of Millennium Group Corporation (Asia) Public Company Limited, or MGC-ASIA, said the steep tax increase should not come as a surprise to businesses Reports had repeatedly circulated about the plan, including estimates near the final rate of 35%..

He said companies already preparing to assemble vehicles locally from completely knocked-down kits were expected to speed up their projects once the official details were announced. Those without such plans would find it difficult to keep competing in Thailand’s crowded market, he said.

Leapmotor is also considering local assembly as part of its long-term commitment to Thailand, said Liam Liu, general manager of Leapmotor (Thailand) Co. Ltd.

Liu said Thailand was a strategically important market with significant potential, rather than merely a place to sell imported vehicles during an EV boom.

In the first nine months of this year, total EV registrations rose 83% year-on-year to 191,273 units, according to the Federation of Thai Industries, which cited Department of Land Transport data.

The FTI forecasts full-year 2026 registrations of between 200,000 and 220,000, compared with approximately 120,000 in 2025.

In Southeast Asia, Vietnam ranked top in the electric passenger car market last year with 180,077 units sold, followed by Thailand (138,000 units) and Indonesia (115,300 units), according to the Global EV Outlook 2026 report by France-based energy research organization IEA.