Thailand's EV Market Expected to Surge 40% Before Tax Hike
Thailand's electric vehicle market is projected to grow by 30-40% in late 2026 as consumers rush to purchase before a new excise tax takes effect in 2027.
According to Khaosod Online, TMBThanachart Bank (ttb) forecasts a significant surge in Thailand's electric vehicle (EV) market during the final two months of 2026. Chatcharit Tangtekingkiet, head of the bank's auto loan division, stated that market growth is expected to reach 30-40% above normal levels. This trend is driven by two primary factors: the annual Motor Expo, which typically boosts demand by 20%, and the impending increase in the excise tax for completely built-up (CBU) electric vehicles. Starting January 1, 2027, the excise tax rate for these vehicles will rise to 35%. This policy change is acting as a catalyst, prompting consumers to finalize their purchases before the year ends to avoid higher costs. For residents and potential buyers, this period represents a window of increased activity in the automotive sector. While the bank anticipates that its own EV loan volume will align with these market trends, the long-term impact of the tax hike on consumer demand throughout 2027 remains to be confirmed. Prospective buyers should monitor dealership promotions and official government announcements regarding vehicle pricing adjustments as the new tax implementation date approaches.
