- Thailand industry groups seek higher taxes on imported EVs to support domestic manufacturing.
- Chinese EV imports are increasing pressure on Thailand’s automotive supply chain and local suppliers.
Automotive industry associations in Thailand are preparing to formally request an increase in excise duties on completely imported electric vehicles as concerns grow over the impact of low-cost imports on the domestic automotive ecosystem. The proposal is expected to be submitted on May 14 by the Electric Vehicle Association of Thailand (EVAT) and the Thai Auto-Parts Manufacturers Association (TAPMA), representing more than 1,500 companies across the country’s automotive supply chain.
The industry bodies are seeking to raise the excise duty on completely imported electric vehicles to at least 32%, which would widen the taxation gap between imported EVs and those assembled locally. The proposal largely reflects growing concerns surrounding increasing imports from China, where manufacturers continue to benefit from lower production costs and strong pricing competitiveness in overseas markets.
According to the associations, Thailand’s automotive supply chain is facing mounting pressure during the ongoing shift from internal combustion engine vehicles to electrified mobility solutions. Local manufacturers and component suppliers are reportedly struggling to remain competitive as imported electric vehicles continue to enter the market at lower prices, placing strain on domestic assembly operations and supplier networks.
The groups stated that manufacturing electric vehicles within Thailand currently costs around 30% to 40% more than importing fully built units from China. This cost imbalance has intensified concerns among local automotive stakeholders regarding long-term sustainability for domestic production facilities, especially for suppliers investing in EV-related manufacturing capabilities.
Industry representatives believe that increasing import duties could help create a more balanced competitive environment for local vehicle assembly and automotive component production. The proposed tax adjustment is also intended to encourage stronger localization efforts and support Thailand’s broader ambitions of maintaining its position as a major automotive manufacturing hub in Southeast Asia.
Frequently Asked Questions
Why are Thailand’s automotive associations requesting higher EV import duties?
Thailand’s automotive associations are seeking higher excise duties on imported electric vehicles to protect local manufacturers and suppliers from increasing pressure caused by lower-cost imports. Industry groups believe imported EVs, particularly from China, are creating an uneven competitive environment because manufacturing costs in Thailand remain significantly higher. The proposed increase to at least 32% is intended to support domestic assembly operations, strengthen the local supply chain, and encourage more localized EV production investments within the country.
What concerns do Thai automotive suppliers have regarding Chinese EV imports?
Thai automotive suppliers are concerned that lower-cost electric vehicle imports from China could weaken local manufacturing competitiveness and affect long-term business sustainability. Industry groups say the cost of producing EVs in Thailand is roughly 30% to 40% higher than importing fully built vehicles from China. As imported models gain market share, domestic parts suppliers and assembly operations may face reduced demand, creating additional pressure during the ongoing transition toward electrified mobility.
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