The government has restructured the excise tax on imported BEV and REEV electric vehicles to 35%, effective 1 January 2027, aiming to encourage automakers to invest in local production, increase the use of domestic components, promote fair competition, and maintain production bases and employment throughout the automotive industry supply chain.
Dr. Pornchai Theerawet, Director-General of the Excise Department, revealed that the Cabinet, in an official offsite meeting in Udon Thani Province on 3 November 2026, approved raising the excise tax on imported BEV and REEV electric vehicles to a rate of 35%, effective from 1 January 2027 onwards.
The vehicles affected by the tax adjustment include BEVs, which run solely on battery power and are driven by electric motors, with the rate raised from 10% to 35%, and REEVs, which use a hybrid of fuel and electricity, can be plugged in to charge, and are driven only by electric motors, with the rate increased from 15% to 35%.
This tax restructuring follows resolutions from the National Electric Vehicle Policy Committee (EV Board) meeting 1/2025 on 25 November 2025 and meeting 1/2026 on 10 September 2026, which tasked the Excise Department to consider incentives to encourage investment in the production or assembly of key automotive components within the country.
At the same time, it aims to maintain stability in Thailand’s automotive industry amid intensifying competition from imported vehicles that do not benefit from government promotion measures, using tax structure as a tool to enhance technological competitiveness and strengthen the domestic supply chain.
Highlighting three principles: encouraging investment, supporting exports, and increasing Thai parts usage.
Dr. Pornchai stated that the excise tax restructuring is based on three key principles:
Import-driven investment (Investment-Driven Import): creating incentives for imports linked to domestic investment.
Becoming a regional and global hub for environmentally friendly vehicle exports (Regional and Global EV Hub): promoting Thailand as a regional and global production and export base.
Enhancing the use of high value-added local content (High Value-Added Local Content): providing opportunities for Thai parts manufacturers to grow alongside the industry's transition.
The main goal is to strengthen the production chain, create jobs, and upgrade Thai labor skills while driving the automotive industry from its traditional base to a center for environmentally friendly vehicle production and export in the future.
This approach will proceed alongside support for alternative energy sources powering various vehicle types, or Multi Pathway, to expand the existing industry into a new, efficient, and sustainable economic growth engine.
Aiming to ensure fair competition and maintain production bases and employment.
Dr. Pornchai added that this tax restructuring aims to create fair competition for domestically produced vehicles and encourage increased electric vehicle production investment in Thailand.
Domestic vehicle and parts manufacturers will directly benefit in terms of production, employment, and economic activities throughout the supply chain, helping to enhance the competitiveness of Thailand's automotive and parts industry over the long term.