Thailand Auto Output Seen Rising 7% in 2027 After Higher EV Import Taxes

A senior private-sector coalition that works with the government on economic and trade policy said Thailand's vehicle production could reach 1.55 million units in 2027, about 7% above this year's expected level. According to Sina Finance, Thailand's cabinet raised the excise tax on imported battery electric vehicles to 35% from 10%, and on extended-range electric vehicles to 35% from 15%, on November 3; the changes take effect on January 1, 2027, to encourage local manufacturing and develop domestic supply chains. The Federation of Thai Industries' automotive club cut its 2026 production target to 1.45 million vehicles from 1.5 million. Production rose 0.39% year over year to 1,080,030 vehicles in the first nine months of this year. The Joint Standing Committee on Commerce, Industry and Banking said Wednesday that the tax measure would support the automotive industry, which accounts for about 10% of Thailand's GDP, employs more than 800,000 people, and supports over 3,000 small and medium-sized enterprises. The committee also said the policy could attract foreign investment in next-generation vehicle manufacturing and research and development.