Thailand accelerates EV push as Chinese electric cars flood market

Thailand's automotive sector is grappling with a surge of cheap fully‑built electric vehicles (CBU) from China, which threatens domestic production, local component suppliers and jobs. Industry leaders have urged the government to grant tax reductions for locally sourced parts and to tighten rules that require foreign EV makers to use Thai components.

The Thai government is evaluating a 24 billion‑baht (US$714 million) assistance package to replace up to 80 000 old gasoline vehicles with EVs. The scheme, originally aimed at public‑transport fleets, may be expanded to all vehicle categories and could include purchase subsidies, low‑interest loans and tax incentives. Existing EV incentives are set to expire in 2027, prompting manufacturers to seek a renewed framework to sustain the sector’s growth. So far, more than US$4 billion in investment, largely from Chinese firms such as BYD and Great Wall Motor, has flowed into Thailand’s EV industry.