Thailand will raise excise tax on certain fully imported electric vehicles (EVs) from 10% to 35% starting 1 January 2027, as it pushes automakers towards local production.
Malaysia has also tightened its completely built-up (CBU) EV import rules, but through a different approach. Here's how the policies compare — and whether Malaysian buyers should be concerned.
Approved by Thailand's cabinet on 3 November, the new tax structure will increase excise tax on affected imported battery electric vehicles (BEVs) from 10% to 35%. Certain imported range-extended EVs (REEVs) will also face a 35% rate, up from 15%.
The move is intended to encourage domestic EV manufacturing while supporting Thailand's existing automotive industry and workforce.
Qualifying locally manufactured EVs can benefit from a much lower 2% excise tax rate, according to The Nation Thailand. The distinction creates a stronger incentive for automakers to produce vehicles locally rather than rely on finished imports.
The policy also builds on Thailand's EV3 and EV3.5 programmes, which link incentives to local production commitments, as Carz previously reported.
Malaysia has not announced a matching 35% tax. Instead, new CBU EV imports have been subject to stricter eligibility requirements since 1 July 2026, following the expiry of the special CBU EV import exemption period at the end of 2025.
Under the Ministry of Investment, Trade and Industry's (MITI) policy, the requirements include a minimum declared cost, insurance and freight (CIF) value of RM200,000 and a minimum motor output of 180 kW (approximately 245 PS).
Crucially, the CIF figure refers to the vehicle's declared import value, not its showroom selling price.
Transitional arrangements also allowed qualifying existing stock, port-held vehicles and units already in transit to continue being sold under the previous rules, as Carz previously highlighted.
| Policy | Thailand | Malaysia |
|---|---|---|
| Main measure | Higher excise tax on affected imported EVs | CBU EV import eligibility requirements |
| Key figure | 35% excise tax | RM200,000 CIF and 180 kW |
| Effective | 1 Jan 2027 | 1 Jul 2026 |
| Local production | Lower excise tax for qualifying locally built EVs | CKD tax incentives to encourage local assembly |
Not automatically. Thailand's new excise tax applies under its own domestic tax system, not Malaysia's. Local EV prices remain subject to Malaysian import rules, duties, taxes and automakers' pricing decisions.
For Thailand, an industry executive quoted by The Nation estimated that some imported EV models could see retail price increases of up to 10%. However, this remains an industry estimate rather than a confirmed price adjustment.
The wider impact may be felt in regional manufacturing strategies, as automakers reassess where to assemble vehicles and source components. For Malaysian buyers, any future price changes would depend on local policy and manufacturers' decisions.
