Thailand has revised its electric vehicle (EV) policy to offer carmakers more flexibility in meeting local manufacturing criteria, to increase exports and relieve pressure from sluggish domestic demand. The modification comes as Chinese EV manufacturers dominate the local market, accounting for more than 70% of sales, increasing rivalry among global automakers.
Originally established in 2022, the EV policy allowed duty-free imports on the condition that automakers create an equal number of EVs locally by 2024. By 2025, the production ratio was expected to rise to 1.5 units for every imported vehicle.
The Board of Investment has declared that exported EVs manufactured in Thailand will now count towards fulfilling production standards. Previously, the quota solely applied to locally registered electric vehicles. This approach intends to help manufacturers balance supply and demand while growing Thailand’s involvement in the regional EV supply chain.
Already home to multinational carmakers like Toyota and Honda, the country has received over $4 billion in EV investments, including significant contributions from Chinese companies BYD and Great Wall Motors.
Thailand exported its first batch of 660 electric vehicles in April. Exports are expected to reach 12,500 units in 2025 and 52,000 by 2026.
