The Japanese ambassador to Thailand urged the government to review its current policies on imported electric vehicles (EVs).
Request to review
At the “Economic Forum 2026: Reinvent Thailand,” Japanese ambassador to Thailand Otaka Masato delivered the opening keynote speech. The ambassador urged the Thai government to “protect” its automotive industry from an influx of lower-priced imported EVs, specifically imported and tax-free EVs. According to the speech, these imports threaten the stability of the Thai automotive industry and Japan-Thailand economic ties, which hinge on automotive manufacturing.
“Once you open the gate to the domestic market for cheap cars, it will have some adverse impact on the existing automotive sector, and this will impact the capability of the Thai industry to export,” Ambassador Otaka said.
Otaka argued that Thailand’s automotive industry is “vital,” comprising 9 per cent of the country’s GDP. He further explained that Thailand has earned significantly in foreign currency from exporting trucks and vehicles. The ambassador’s presentation included data of domestic vehicle sales, which are on a downward trend. Contrastingly, completely built-up (CBU) units increased in market share.
Ambassador Otaka said that these circumstances put manufacturers in a “very difficult situation.” He cited Suzuki and Subaru as examples of Japanese car manufacturers who have stopped producing cars in Thailand due to the rising pressure in the industry.
While EVs may have a positive impact on the environment, Otaka argued that growing competition from the inexpensive EV segment may threaten Thailand’s automotive exports.
Excise tax changes
Starting 1 January 2027, Thailand will amend its policies on imported EVs to protect its domestic car manufacturers. Excise taxes on fully imported EVs will increase from 10 per cent to 35 per cent starting next year.
This increase is also meant to incentivise companies that choose to manufacture vehicles in Thailand rather than overseas. The government said the measure was intended to encourage local vehicle production and investment in Thai-made components.
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