The Federation of Thai Industries (FTI) has voiced strong support for a proposed overhaul of the automotive tax structure, aiming to use tax incentives to drive domestic investment, encourage local manufacturing and integrate small and medium-sized enterprises (SMEs) into the modern electric vehicle (EV) supply chain.
FTI Chairwoman Pimjai Leeissaranukul expressed support for the initiative following her attendance at the 1/2026 National Electric Vehicle Policy Committee meeting on Friday, chaired by Finance Minister Ekniti Nitithanprapas.
The committee highlighted the rapid transformation of Thailand’s auto sector, noting that, during the first seven months of 2026, battery electric vehicle (BEV) registrations reached 126,950 units, an 88% year-on-year increase. Combined registrations of all xEV models accounted for 55% of all new vehicle registrations.
To date, the Board of Investment (BOI) has approved 189 projects related to EV and associated industries, valued at 151.37 billion baht. The expansion plans include installing 23,135 EV charging outlets and over 50 billion baht in additional investments planned by domestic manufacturers.
To maintain momentum, the committee approved the principles of the tax restructuring.
The measure aims to incentivise genuine local production, promote the use of domestic parts and raw materials, ensure fair competition and consolidate Thailand's position as a global production and export hub. The Excise Department has been tasked with drafting the operational details for Cabinet approval.
Pimjai emphasised that the automotive and auto parts industry accounts for over 10% of Thailand's gross domestic product (GDP), spanning more than 2,500 companies and employing over 800,000 workers.
"The new tax structure should act as a key mechanism to incentivise actual domestic investment and manufacturing based on the economic value generated," Pimjai said.
She added that key criteria must include local content utilisation, technology transfer, workforce upskilling and connecting local SMEs to the advanced automotive supply chain.
