Thailand raises imported EV tax to 35% from January

Anyone with their eye on an imported electric car now has a deadline to think about. From 1 January 2027, the excise tax on these cars rises to 35%, up from 10% to 15%. That makes the last two months of the year a time when car buyers face the same question: book now, or wait and see next year's prices.

The Cabinet approved the change at an off-site meeting in Udon Thani on 3 November 2026, and Ekniti Nitithanprapas, deputy prime minister and finance minister, announced it after the meeting, The Standard and Thai PBS World reported. The rate does not apply straight away so that carmakers and dealers have time to adjust.

The new tax targets fully imported electric cars

The measure does not touch every electric car on the road. It targets two kinds of car brought in from abroad.

The first is the BEV, or battery electric vehicle, which runs on its battery alone and has to be plugged in. Its tax rises from 10% to 35%. The second is the REEV, or range-extended electric vehicle, whose wheels are also driven only by an electric motor but which carries a small petrol engine to recharge the battery when it runs low. Its tax rises from 15% to 35%, so both kinds end up at the same rate.

The cars affected are those not made in Thailand and not using parts made in the country. Electric cars assembled in Thailand still pay 2%. Put simply, if the car you want comes out of a Thai factory, this tax does not change, but if it arrives whole on a ship, its tax will be much higher next year.

The government wants carmakers to build in Thailand

The reason the government gave is fairness to carmakers that have already built factories in Thailand.

Ekniti said companies that built plants and hired Thai workers have to compete with cars imported for sale without any investment in the country. The government wants to keep Thailand as the region's car production and export base and to look after the parts makers, small businesses and workers in that supply chain, rather than let the country become just a market for cars made elsewhere.

The other half of the measure is an offer to carmakers. The Cabinet told the Excise Department to negotiate special tax rates with investors that set up or expand production in Thailand. Put another way, the state is telling carmakers that if they want to sell in Thailand at a low tax rate, they should build here. For now, nobody knows what the special rate is, how much a company must invest to get it, or what the quotas that would let investing carmakers keep importing at the old rate will look like. The Nation reported that the quota arrangements are not yet final.

The tax rises 25 points, but showroom prices will not rise as much

A 35% rate sounds alarming, but it does not mean car prices will go up by the 25-point difference in the tax.

The first reason is that excise tax is charged on a tax base set by the Excise Department's rules, not on the price you negotiate in the showroom. The second is that carmakers decide for themselves how much of the cost to absorb and how much to pass on. An unnamed senior executive at a Chinese carmaker told The Nation that some imported EVs could cost up to 10% more, from tens of thousands to hundreds of thousands of baht depending on the model, and said he did not expect retail prices to rise by the full increase in the tax rate.

Earlier, when the plan was still for a tax of "at least 30%", a Finance Ministry source gave The Nation a rough example: a car priced at 1 million baht that pays about 100,000 baht at the 10% rate would pay at least 200,000 baht more. The figure shows the scale of the change, but it is not a price quote, as it works from the full price of the car and the rate that was approved is 35%. Real prices for each model will have to wait for the carmakers.

The brands likely to be hit hardest are those with no plans to build in Thailand. The Nation named Tesla, Volvo, Porsche and Audi. Several Chinese carmakers are speeding up their factory plans: Leapmotor plans to start production in Thailand in 2027, Geely is accelerating plans to assemble cars in Thailand the same year, and BYD already has a Thai factory. Electric car prices next year are therefore likely to differ widely depending on where each brand builds its cars.

Before you pay a year-end deposit, ask three questions

People in the car industry expected a year-end booking rush even before the Cabinet met.

Suwat Supakarndechakul, vice chairman of the Federation of Thai Industries and chairman of its automotive industry club, said in October that the end of 2026 would be a golden period for imported cars, with EV bookings likely to jump at the Motor Expo before demand drops sharply in 2027. He also warned that some poorly selling import brands could pull out of Thailand, leaving owners with problems over servicing, spare parts and warranties, and urged buyers to look at how stable a brand is and whether it builds in Thailand.

If you decide to book now, ask the salesperson three things before you pay. First, is the car you are booking already in Thailand, and when will it be delivered? Second, if it is not delivered before 1 January 2027, does the agreed price still stand? Ask for that in writing on the booking form. Third, how many service centres does the brand have near you, and how many years is the battery under warranty? Ask all three before you pay, because the new tax starts next year, but you will drive the car for years.

If you are not in a hurry, electric cars made in Thailand are not affected by this tax, and carmakers that agree to build factories may get special rates. The 43rd Motor Expo runs from 2 to 13 December 2026 at Challenger Hall, IMPACT Muang Thong Thani, according to the event's website. If you are going to look at cars, take these three questions with you, and remember that the new tax starts on 1 January 2027.

FAQ

Do electric cars made in Thailand pay more tax?

No. Electric cars made in Thailand still pay 2% excise tax. The 35% rate applies to battery electric and range-extended electric cars imported whole.

When does the new tax start?

On 1 January 2027, under the Cabinet decision of 3 November 2026.

Will imported car prices rise by 25% in line with the tax?

Nobody can say for sure. The tax is charged on a tax base, not the showroom price, and carmakers may absorb part of it. One Chinese carmaker executive expects some models to cost up to 10% more.

If I book in December but get the car in January, which rate applies?

The reports so far do not explain this case. Ask the dealer whether the car is already in Thailand, and ask for the booking form to state that the agreed price stands even if delivery is after 1 January 2027.

Sources

• The Nation: Thai Cabinet raises excise tax on certain EV imports to 35% from 2027
• The Nation: Imported EV prices could rise up to 10% after Thai tax hike
• The Nation: EV import tax plan tipped to trigger year-end booking rush
• Thai PBS World: Cabinet approves tax hike on imported EVs to 35% from 2027
• The Standard: ครม. เคาะขึ้นภาษี EV นำเข้าจาก 10% เป็น 35% เริ่ม 1 ม.ค. 2570
• Motor Expo: The 43rd Motor Expo, 2 to 13 December 2026