Auto groups seek state protection

Thailand’s automotive industry is pushing for government intervention to safeguard local battery electric vehicle (BEV) production amid fears of a surge in imports. The Electric Vehicle Association of Thailand (EVAT) and nine other industry groups submitted eight proposals to the government, arguing that the current framework fails to incentivize local manufacturing. The EV3.5 incentive scheme, which requires automakers to produce BEVs locally for subsidies, expires at the end of next year. Without tax cuts or subsidies, Chinese EV manufacturers operating in Thailand may reduce local production and instead import more vehicles, exploiting the 0% tariff under the ASEAN-China Free Trade Agreement. This could destabilize Thailand’s supply chain, as local car and parts makers rely on steady demand. EVAT president Suroj Sangsanit emphasized that the proposals aim to ensure fair competition, not block imports or raise prices for consumers. One key suggestion is adjusting excise tax rates, as the current 8 percentage-point difference between imported and locally made vehicles fails to encourage domestic production. The associations plan to discuss the proposals with Prime Minister Anutin Charnvirakul, urging the government to decide whether Thailand should prioritize becoming a low-cost BEV market or strengthen its manufacturing base. Without intervention, they warn, the industry could face a collapse of local production and job losses in the supply chain.