Thailand to raise excise tax on CBU EVs to 35% from Jan 1, 2027 – move encourages investment, local production

According to a report by Bangkok Post, Thailand’s cabinet today approved an increase in the excise tax on fully-imported (CBU) electric vehicles (EVs) to 35% from 10%. The country’s finance minister, Ekniti Nitithanprapas, said this was part of a new tax structure aimed at encouraging investment and local production.

The new tax rate is scheduled to come into effect from January 1, 2027 and is said to serve two objectives. The first is protecting investors who have already poured money into manufacturing plants and supply chains in Thailand. Additionally, it encourages automakers that are reliant on CBU imports to accelerate negotiations with the government to establish local production facilities.

Bloomberg said previously that Thailand’s EV imports in September this year hit USDD421 million, representing an increase of 138% or more than double from a year earlier. This was driven almost entirely by China, which accounted for almost 99% of shipments. In the first nine months of 2026, Thailand imported USD2.37 billion worth of EVs, 96% of them from China.

Demand for EVs has grown in Thailand, with the statistics from the department of land transport revealing that total EV registrations from January to September this year hit 191,273 units, an 83% increase over the same period in 2025, with the majority (167,789 units) being electric passenger cars. Amid this boom, the Thailand government wants its local automotive sector to grow and not rely heavily on CBU imports.

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