Japanese Ambassador Warns EV Tax Policy Impacts Existing Automotive Industry and Exports

Key summary

Mr. Otaka Masato, the Japanese Ambassador to Thailand, stated at the The Standard Economic Forum 2026: Reinvent Thailand seminar that the 0% tax policy for imported electric vehicles (EVs) has a negative impact on domestic car sales and affects the long-term export capacity. The Thai automotive industry is a major export hub to over 100 countries, creating more than 80,000 jobs, and has a domestic content ratio of over 90%. However, it is facing challenges from conflicts in the Middle East, floods in the Chao Phraya River basin, and tax policies that attract cheap EVs from abroad. This led to Suzuki and Subaru ceasing production in Thailand last year. The Japanese Ambassador recommended that Thailand review its policies to maintain its export base.