Thailand Duty for Electric Vehicles
The Thai government approved a package of incentives including tax cuts and subsidies to promote electric vehicle (EV) consumption and production from 2022-2023. The incentives vary depended on the type and model of vehicles and are expected to help reduce the price of each EV by between $2,200 - $4,800. In addition, the government also agreed to reduce the excise tax and import duties on completely knocked down and completely built-up units to stimulate wider and faster use of electric vehicles in the country. For example, the reduced import tariff on complete EV cars will range from zero to 40 percent, depending on the engine size, until 2023.
The Thai cabinet also approved measures to promote domestic manufacturing of EVs, including exemption of import duties on significant electrical parts between 2022-2025. These significant electrical parts include the batteries, traction motors, compressors for battery EVs, battery management systems, drive control units and reduction gear. Thailand aims to be an electric vehicle production hub in Asia and the country expects to produce EVs at 30 percent of Thailand’s total auto production or 725,000 units/year by 2030.
Part suppliers and manufacturers of electric vehicles have potential business opportunities to export EV parts and vehicles to the Thai market. U.S. companies are encouraged to contact the U.S. Commercial Service in Bangkok by emailing email@example.com to learn more about the tariff reduction and Thai government incentives for imported EVs.