The Federation of Thai Industries has stepped forward with strong support for restructuring the automotive excise tax as a way to stimulate investment, expand domestic production, and strengthen the supply chain linkages that connect large manufacturers with small and medium enterprises.

At the recent meeting of the National Electric Vehicle Policy Committee, chaired by the Deputy Prime Minister and Minister of Finance, the discussion centered on how tax policy can be used as a lever to accelerate Thailand’s role as a global automotive hub.

The numbers already show momentum. In the first seven months of 2026, registrations of battery electric vehicles reached 126,950 units, representing an 88 percent increase and accounting for more than half of all new vehicle registrations. The Board of Investment has also promoted projects in the electric vehicle sector with a combined value exceeding 151 billion baht, including plans for more than twenty‑three thousand charging dispensers and additional domestic investment commitments surpassing fifty billion baht.

The committee approved the principle of restructuring the excise tax and tasked the Excise Department with preparing detailed measures for cabinet consideration.

The goal is to create fair competition, encourage the use of domestic parts and raw materials, and ensure that Thailand remains a world‑class base for automotive manufacturing and exports. The automotive and parts industry already contributes more than ten percent of the country’s gross domestic product, with over 2,500 companies employing more than 800,000 people. Any new measures must therefore deliver tangible benefits to parts manufacturers, supporting industries, and SMEs.

The new tax structure is envisioned not only as a fiscal tool but as a catalyst for technology transfer, workforce skills development, and deeper integration of SMEs into the modern automotive supply chain. The Federation has committed to act as a bridge between government, manufacturers, and industry associations, gathering feedback and ensuring that the measures are practical and aligned with the needs of the sector.