Two leading automotive groups in Thailand have urged Bangkok to prioritise and protect local players in the electric vehicle ecosystem amid an influx of cheap EV imports, particularly from China.
The Automotive Industry Club of the Federation of Thai Industries (FTI) suggested giving tax cuts for using local components, while the Thai Automotive Industry Association (TAIA) called for higher excises on imported EVs to protect local manufacturers.
TAIA president Yuphin Boonsirichan called for Bangkok to restructure the duties imposed on fully imported EVs to safeguard local manufacturers and component suppliers.
She urged the Thai government to launch campaigns promoting the purchase of EVs assembled domestically, even through tax incentives, Bangkok Post reported.
Yuphin also suggested that government agencies procure locally assembled EVs to stimulate the sector’s growth.
Suwat Supakandechakul, chairman of the Automotive Industry Club, said basic components like car seats, wiring and windscreens should be locally sourced to ensure quality and reduce production costs.
Suwat said high-value parts already manufactured in Thailand, such as vehicle chassis, should also be prioritised.
“The government should promote the use of these parts, with expenses made tax-deductible,” he said, adding that this was necessary to protect Thailand’s position as a regional automotive hub.
He also raised concerns over potential US tariffs due to transshipments, where products with imported components are assembled in Thailand before being shipped to the US.
Suwat said the FTI was holding discussions with a Thai parliamentary committee on tariff measures while pushing for tougher rules on EV production to protect the local industry.
The calls from the Thai automotive groups follow Malaysia’s decision to impose two new conditions for the import of completely built-up EVs following the end of a four-year special exemption on Dec 31, 2025.
Since July 1, all imported CBU EVs are subject to a minimum cost, insurance and freight value of RM200,000. The second requirement is that the minimum motor power threshold had been lowered to 180kW from the previous 200kW.
The investment, trade and industry ministry continues to provide a 100% exemption from import duty, excise duty, and sales tax for locally assembled completely knocked-down EVs until Dec 31, 2027.
