Thailand is positioning itself as Southeast Asia’s leading hub for electric vehicles (EVs). The government’s updated Thailand Electric Vehicle Policy under the Board of Investment (BOI) EV 3.5 framework (2024–2027) aims to strengthen local manufacturing capacity and attract more foreign investors. Through targeted incentives and strict local production requirements, the policy is setting the foundation for a self-sustaining EV ecosystem.
A Policy Built for Growth
Under the BOI EV 3.5 scheme, the Thai government offers strong financial incentives to accelerate adoption and manufacturing. These include excise tax cuts to 2% for eligible battery EVs and consumer rebates worth THB 100,000 in 2024 and THB 75,000 in 2025 for EVs with battery capacities above 50 kWh. Such benefits are designed to boost consumer demand while encouraging manufacturers to establish local operations.
However, these incentives come with a strategic condition. Investors enjoying import duty relief must commit to local assembly, maintaining a 2:1 ratio of locally produced to imported vehicles by 2026, which will increase to 3:1 by 2027. This approach ensures that while Thailand attracts global EV brands, it also builds a sustainable domestic supply chain, especially in battery production and component manufacturing.
Rapid Market Expansion and Local Demand
Thailand’s EV market is expanding at an unprecedented rate. Domestic EV registrations surged from fewer than 10,000 units in 2021 to around 70,000 units in 2024, reflecting both consumer enthusiasm and growing availability of locally assembled vehicles.
The market momentum continues into 2025, with EV sales expected to grow by about 40%, supported by the country’s continuous investments in charging infrastructure and plug-in hybrid development. Notably, battery electric vehicles (BEVs) recorded a 400% increase in market value between 2021 and 2022, and analysts forecast a compound annual growth rate (CAGR) of over 25% through 2027.
This sustained growth shows that the EV policy is achieving its intended impact—turning Thailand into a production and consumption powerhouse in the region’s green mobility shift.
Building a Long-Term EV Future
Beyond 2025, Thailand’s electric vehicle ambitions remain bold. The number of BEV sales is expected to rise at a CAGR of 17.7%, from 92,576 units in 2023 to 290,000 units by 2030. This would make EVs account for nearly 29% of total vehicle sales.
With this trajectory, Thailand is not only attracting leading EV brands from China, Japan, and Europe but also creating opportunities for local suppliers in battery technology, recycling, and raw material processing. The government’s mix of financial support and localization rules ensures long-term competitiveness while reducing reliance on imports.
The Thailand Electric Vehicle Policy represents a balanced approach—one that welcomes global players while building domestic expertise. By coupling incentives with production targets, the nation is securing its role as a central hub for EV manufacturing and innovation in Asia.
Read also: Thailand EV Registrations Surge Past 66K in H1 2025
