Bangkok:The Electric Vehicle Association of Thailand (EVAT) has expressed support for the newly introduced excise tax on electric vehicles (EVs), describing it as a crucial first step in promoting the local automotive industry.
According to Thai News Agency, the EVAT welcomed the Cabinet's decision to increase the excise tax on imported battery electric vehicles (BEVs) from 10% to 35% and on hybrid electric vehicles with rechargeable batteries (REEVs) from 15% to 35%, starting January 1, 2027. Mr. Siamnat Panassorn, Vice President for Industrial Policy and Investment Support of EVAT, highlighted that this measure is intended to encourage foreign car manufacturers to establish factories in Thailand, thus boosting the use of local parts and supporting domestic employment.
Despite the anticipated rise in prices for imported EVs from manufacturers such as Tesla and GEELY, Mr. Siamnat emphasized that the move is not about closing the market but rather encouraging these companies to invest locally. The new tax is expected to incentivize the relocation of assembly plants to Thailand, enhancing fairness for domestically produced vehicles and benefiting the country’s economy.
Mr. Siamnat also addressed concerns about potential price dumping during the transition period before the tax increase, suggesting that manufacturers might instead stockpile inventory. He noted that EVs produced within Thailand will not be affected by the new tax, maintaining their current price levels, which underscores the benefits of supporting local production.
The EVAT also stressed the importance of defining "Local Content" to prevent fraudulent claims of domestic assembly and called for collaboration between public and private sectors in technology transfer, clean energy use, and accelerated production. This comprehensive approach aims to ensure long-term sustainability and competitiveness for Thailand's automotive industry.