Thai producers fear flood of imports
Visitors browse various BEV brands at the Bangkok International Motor Show in April. (Photo: Pattarapong Chatpattarasill)
Thailand's automotive and auto parts associations are urging the government to impose steep import duties on Chinese battery electric vehicles (BEVs), warning that once the EV3.5 incentive scheme ends, a surge in imports could severely damage the domestic car industry.The EV3.5 scheme, which runs from 2024 to 2027, offers tax cuts and subsidies to automakers in exchange for investment in BEV assembly plants in Thailand.
To accelerate domestic industry growth, the scheme requires automakers to maintain a production-to-import ratio. Companies must produce two BEVs locally for every one imported between 2024 and 2025. The ratio rises to three locally produced vehicles for every imported unit by 2027.
However, industry leaders fear Chinese automakers may scale back or halt local production once they meet the minimum requirements under EV3.5.
