Thailand raises import tariff on foreign EVs to 35%

Thailand's government has announced plans to raise import duties on electric vehicles to 35%, marking a significant escalation in trade protections for the country's growing EV sector. The move is designed to encourage both international and domestic manufacturers to establish production facilities within Thailand rather than importing finished vehicles from abroad.

The Southeast Asian nation has positioned itself as a regional hub for automotive manufacturing, and the tariff increase reflects ambitions to capture a larger share of the rapidly expanding electric vehicle market. By making imported EVs substantially more expensive, policymakers hope to create stronger incentives for automakers to shift their supply chains and manufacturing operations to Thailand.

The tariff adjustment comes as Thailand seeks to transition away from traditional internal combustion engine vehicles and establish itself as a center for EV innovation and production. Several major automotive manufacturers already operate assembly facilities in the country, and the higher import duty may accelerate decisions to localize more of their EV production.

The policy aligns with broader regional trends as Southeast Asian governments compete to attract electric vehicle manufacturing investment. Thailand's automotive industry, which has long served as a production base for major global brands, is now working to ensure it remains competitive in the shift toward electrification.