The Federation of Thai Industries supports restructuring the automotive excise tax to enhance investment, boost domestic production, and strengthen supply chains, particularly for SMEs. A recent meeting discussed leveraging tax policy to position Thailand as a global automotive hub, capitalizing on the growing electric vehicle market and ensuring fair competition and technological advancement.

Honda plans to invest Rp 6.4 trillion in Thailand while requesting a review of the country’s high import tariffs on vehicles from Japan. This move aims to enhance competitiveness against EVs benefiting from lower tariffs. Balancing investment attraction with local industry protection poses a complex challenge for Thai policymakers.