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Thailand introduces new tax incentives for hybrid vehicle manufacturers. (Photo: Electric Vehicle Association of Thailand)
To expand the development of electric vehicles (EVs), the Thai government has passed a new tax system aimed at hybrid electric vehicles (HEVs) and mild hybrid electric vehicles (MHEVs), offering conditional excise tax reductions for manufacturers.
Additionally, as overall vehicle market growth slows down, the EV3 incentives focused on battery electric vehicles (BEVs) will be extended to help manufacturers weather the downturn.
Incentives for hybrid vehicles with new tax system
Under the new regulations, for HEVs with carbon emission less than 100 grams per kilometer, the excise tax rate will be set at 6% from 2026 to 2032. For vehicles with emissions between 101 and 120 grams per kilometer, the rate will be 9% during the same period, a significant reduction compared to the previous system where the tax rate would increase by 2% annually starting in 2026.
