Thailand Automotive Industry Groups Seek Urgent EV Policy Reforms to Protect Local Manufacturing

Thailand’s automotive industry groups have jointly called for urgent policy reforms to safeguard the country’s manufacturing ecosystem during the ongoing transition toward electric vehicles. Reported on May 14, 2026, the Electric Vehicle Association of Thailand (EVAT) and nine additional automotive and parts industry organizations warned that growing imports of fully built EVs from China could significantly weaken domestic production capabilities. The industry groups emphasized that maintaining Thailand as a regional automotive manufacturing hub remains essential for long-term industrial stability, employment generation, and supply-chain resilience.

The statement highlighted concerns surrounding zero-tariff import schemes that currently make importing EVs from China approximately 30–40% cheaper than manufacturing vehicles locally in Thailand. According to the industry associations, the pricing imbalance creates an uneven competitive environment for companies investing in domestic assembly plants, local supply chains, and manufacturing infrastructure. The groups also warned that the situation could become more severe after Thailand’s EV 3.5 incentive program concludes in 2027, potentially increasing pressure on local suppliers and automotive component manufacturers.

Key Concerns Raised by Thailand Automotive Industry Groups

The industry organizations stressed that overreliance on imported EVs may gradually weaken Thailand’s established automotive ecosystem, which has historically served as one of Southeast Asia’s major production bases. They argued that the country should prioritize policies encouraging long-term domestic investment rather than allowing the market to become heavily dependent on imported vehicles. The associations also noted that a strong local manufacturing foundation remains critical for sustaining employment, technology development, industrial competitiveness, and supplier-network stability across the automotive sector.

Major Policy Recommendations Proposed by Industry Bodies

The joint statement outlined several measures intended to create fairer competition between manufacturers investing in local production and companies relying mainly on imports. Proposed reforms included widening the tax difference between imported EVs and locally assembled models, while linking import privileges directly to verified domestic investment commitments. The organizations also called for stricter local-content verification procedures and tighter origin checks to ensure compliance with domestic manufacturing objectives.

The groups further recommended increasing the use of Thai-made automotive parts and limiting Board of Investment incentives in sectors where local companies already possess sufficient manufacturing capability. Additional proposals included tighter controls on raw materials and scrap-metal management to support domestic industrial stability. Industry representatives also emphasized the importance of introducing technology-transfer requirements that would help strengthen local software-development capabilities and support Thailand’s growing automotive technology ecosystem.

Proposed Areas of EV Policy and Manufacturing Reform in Thailand

The statement also addressed the growing role of advanced driver assistance systems and automotive software technologies in future mobility solutions. The industry groups proposed stronger local testing procedures and safety standards for ADAS technologies specifically adapted to Thai driving environments and road conditions. They stated that establishing localized validation requirements would help improve safety outcomes while supporting domestic engineering and software-development capabilities within Thailand’s automotive sector.

Industry representatives concluded that the proposed reforms are necessary to ensure balanced competition between manufacturers committed to long-term local investment and companies primarily benefiting from imported EV sales. The groups maintained that strengthening domestic manufacturing capacity, encouraging local supplier participation, and improving technology-development capabilities would be essential for preserving Thailand’s role as a leading regional automotive production center during the EV transition period.

Frequently Asked Questions

Why are Thailand automotive groups concerned about Chinese EV imports?
Thailand automotive groups are concerned because imported Chinese EVs currently benefit from zero-tariff schemes that make them significantly cheaper than locally manufactured vehicles. Industry associations warned that this pricing gap could weaken Thailand’s domestic manufacturing ecosystem, reduce local supplier competitiveness, and increase dependence on imported vehicles. The groups believe that without stronger policy measures, Thailand’s position as a regional automotive manufacturing hub may gradually decline, particularly after existing EV incentive programs expire in 2027.

What policy changes were proposed by Thailand automotive industry groups?
Thailand automotive industry groups proposed several measures to support domestic EV manufacturing competitiveness and supply-chain stability. Recommendations included increasing the tax gap between imported and locally assembled EVs, linking import privileges to domestic investment commitments, and strengthening local-content verification requirements. The organizations also proposed tighter ADAS safety standards, technology-transfer requirements for software development, expanded use of Thai-made components, and restrictions on incentives in sectors where local manufacturing capabilities are already well established.