Thailand raises tax on CBU EVs to 35% from 2027 – how does Malaysia's MITI policy compare?

Thailand is making imported electric vehicles more expensive, with its Cabinet approving an increase in excise tax for fully imported battery electric vehicles (BEVs) from 10% to 35%, effective 1 January 2027. Range-extended electric vehicles (REEVs) will also see their rate rise from 15% to 35%.

The changes target vehicles that are not manufactured in Thailand and do not use locally produced parts. The aim is to encourage more automakers to invest in local manufacturing, strengthen the domestic supply chain and support companies that have already established production facilities in the country.

Earlier this year, Malaysia has also moved to tighten its CBU EV import requirements, although instead of raising taxes on imported models, it has introduced new entry conditions.

Following the end of the four-year tax exemption on 31 December 2025, the Ministry of Investment, Trade and Industry (MITI) introduced two requirements for CBU EVs imported through the franchise Approved Permit (AP) route, effective 1 July 2026:

• Minimum CIF value: RM 200,000.
• Minimum motor output: 180kW, revised down from the previous 200 kW requirement.

Read Also: MITI Announces Strict New Rules for Imported EVs — Minimum RM200,000 CIF & 180 kW from July 1

While the policies take different approaches, the direction is similar. Both moves reflect a broader shift in Southeast Asia's EV market: attracting investment, strengthening local supply chains and developing their automotive industries rather than relying solely on imported vehicles.

This shift is already reflected in automakers' growing manufacturing presence across the region. In Thailand, for example, Chinese brands including BYD, GWM, MG, GAC Aion, Changan and Chery (Omoda & Jaecoo) have established local production operations.

Read Also: BYD Thailand Plant rolls out 100,000th new energy vehicle as local production ramps up

For automakers looking to expand in Southeast Asia, having a local manufacturing base is becoming increasingly important.