Thailand targets 300,000 new EVs with tax cuts, expanded taxi trade-in scheme

Thailand is preparing new EV tax incentives, extending annual tax reductions and expanding trade-in schemes to include taxi fleets. (Photo: iStock)

Thailand is preparing a new round of tax incentives to accelerate electric vehicle (EV) adoption, combining an extension of annual tax reductions with an expanded trade-in scheme that could bring taxi fleets into the transition.

The policy push comes as Thailand’s auto sector shows early signs of recovery after a prolonged slowdown. Domestic sales increased 7.29% year-on-year to 59,865 units in March, supported in part by deliveries from the Bangkok International Motor Show, where bookings exceeded 100,000 units.

Unlock the full article to explore three key takeaways:

1. Thailand’s Ministry of Transport is proposing an 80% annual vehicle tax cut for new factory-built EVs and an expanded trade-in scheme covering taxi fleets, with cabinet submission pending Finance Ministry review.
2. Vehicle production rose in March 2026, with hybrid output up 12.69% and ICE passenger car production down 22.08%, reflecting a gradual shift in manufacturing mix toward electrified models.
3. Despite early signs of sector recovery, industry representatives say clearer government direction on fiscal policy and budget planning will be needed before automakers commit to a new investment cycle.