Imported EV prices could rise up to 10% after Thai tax hike

Some imported electric vehicles in Thailand could become up to 10% more expensive after excise tax rises to 35% on January 1, 2027, a senior executive at a Chinese carmaker estimates, with potential increases running into tens or hundreds of thousands of baht on certain models.

The unnamed executive acknowledged that the company understood and accepted the government’s policy. However, retail price adjustments were unlikely to match the scale of the 25-percentage-point increase in the excise tax rate on imported battery-electric models.

Higher tax takes effect with import quotas unresolved

The Cabinet agreed on November 3, 2026, to increase excise tax on imported battery electric vehicles (BEVs) from 10% to 35%. The rate for imported range-extended electric vehicles (REEVs) will rise from 15% to 35%.

However, the arrangements for import quotas that would allow manufacturers investing in Thailand to retain existing tax rates on eligible imported vehicles have yet to be finalised.

The preferential treatment would cover businesses with local manufacturing investment and domestic parts suppliers, but the allocation framework and procedures remain unresolved.

Electric vehicles manufactured in Thailand will continue to attract the existing 2% excise tax rate.

Brands without plans for Thai vehicle production, including Tesla, Volvo, Porsche and Audi, are expected to be exposed to the higher tax, potentially leading to price increases.

Leapmotor targets Thai production in 2027

Chinese brands including Geely and Leapmotor are adjusting their investment plans to accelerate the establishment of assembly facilities in Thailand in 2027.

Liu Ning, general manager of Leapmotor (Thailand) Co., Ltd., confirmed that the company planned to invest in a Thai factory and begin production in 2027. He also pledged strict compliance with government policies and regulations.

“Whatever policies the government announces, they will not affect our sales or investment plans because we are genuinely committed to establishing and developing our business in Thailand,” Liu said.

XPeng studies a Thai factory without setting a timetable

James Wu, vice-president of XPeng, expressed understanding of the government’s decision to increase excise tax on imported electric vehicles to protect Thailand’s automotive industry.

XPeng is studying plans for a manufacturing facility in Thailand following earlier investments in Indonesia and Malaysia.

“Thailand is a strategically important market for XPeng. We are working with MGC-ASIA to develop our business over the long term and have plans to establish a manufacturing facility, although we cannot yet provide details or a timetable,” Wu said.

BYD’s Thai distributor backs protection for local investors

Pratarnwong Phornprapha, chief executive officer of Rêver Group, backed the revised excise tax structure, arguing that the government was moving in the right direction.

BYD and Rêver had invested substantially in Thailand and used domestic parts suppliers, he explained.

“Previously, Thailand’s automotive market might have been viewed as a contest between Chinese and Japanese manufacturers. That is no longer the case,” Pratarnwong said.

“The distinction should now be between companies that genuinely invest in Thailand and those that do not invest here but import vehicles from other countries and sell them while paying very low taxes.

“The new tax structure will provide meaningful protection for companies investing in Thailand. We are also discussing with BYD’s factory in Thailand the possibility of producing additional new models locally in the future.”

Source: Thansettakij