- EV export units now count toward Thailand’s local production goals.
- Revised EV policy boosts manufacturing flexibility amid weak local sales.
- EV exports projected to rise to 52,000 units by 2026.
Thailand has amended its flagship electric vehicle (EV) incentive policy to give greater flexibility to automakers to meet the local production requirements. The policy changes come after weak domestic demand and growing competition from Chinese EV brands, who now hold more than 70% of Thailand's EV market.
The revamped rules allow exported EVs to count toward production obligations under the scheme, instead of just only locally registered EVs as stated before. The new set of changes can be taken as a strategic move by Thailand’s Board of Investment (BOI) to position Thailand as the EV manufacturing and export hub in Southeast Asia.
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The EV policy was initially rolled out in 2022 and allowed for duty free imports as long as matching local production take place by 2024 and there is a 1.5:1 production-to-import ratio in 2025. The policy has already reaped more than $4 billion in investments from Chinese EV manufacturers such as BYD and Great Wall Motors. Already engaged with Thailand’s automotive industry, Japanese car manufacturers including Toyota and Honda, now have increased flexibility in production.
BOI Secretary-General Narit Therdsteerasukdi, opined that the revision will help prevent oversupply, while enhancing Thailand’s role in global and regional EV supply chains. It is expected that EV exports will reach 12,500 units in 2025 and 52,000 by 2026. The country also reported its first EV export shipment (660 units) which occurred in April this year