Minister vows no new EV import curbs this year

The government will not introduce additional measures to curb electric vehicle imports before higher excise tax rates on imported EVs take effect on Jan 1, 2027, citing concerns over potential complaints that such actions could constitute trade barriers, according to the Industry Ministry.

Industry Minister Varawut Silpa-archa said the approved increase in excise tax on imported battery EVs and range-extended EVs is sufficient to protect Thailand's automotive industry and supply chain.

Under the new measure, the tax rate on imported battery EVs and range-extended EVs increases to 35% from the current 10% and 15%, respectively.

Industry observers expect EV imports and bookings to accelerate during the final two months of this year as consumers and dealers seek to avoid the higher tax burden.

"The government will not introduce any further measures during this period. Market competition and free trade principles should be allowed to operate normally," Mr Varawut said.

He said he was confident that auto manufacturers would compete fairly, ultimately benefiting consumers through more competitive EV pricing.

The Federation of Thai Industries previously warned that a surge in EV imports before the end of the year could weaken demand in 2027.

The group also raised concerns over possible confusion regarding tax treatment for vehicles ordered this year but delivered after Jan 1, when the higher rates come into effect.

Mr Varawut said the tax increase is intended to encourage new investment in EV production facilities in Thailand, requiring automakers, parts suppliers and workers to adapt to changing technologies and investment trends.

Speaking at the recent launch of new Mercedes-Benz plug-in hybrid EVs and a diesel-powered model in Thailand, he said the ministry would continue to support the company's investment plans.

"The ministry recognises Mercedes-Benz as one of Thailand's long-standing investors, with a presence in the country spanning many decades. This year marks the company's 140th anniversary," said Mr Varawut.

Passakorn Chairat, the new industry permanent secretary, said the government remains committed to providing equal support to foreign investors while accelerating the development of the industrial sector, particularly the EV industry. He said the government aims to strengthen Thailand's position as a regional manufacturing hub while supporting efforts to reduce carbon emissions in line with global sustainability trends.