Government Weighs 30% Excise Tax on Fully Imported EVs, Decision Expected by September

RegulationIndustryAnalyst
โดย HoonVision·TH·Read original
Summary · why it matters

The government is in discussions with the automotive industry to finalise the excise tax rate for electric vehicles, with a decision expected within September. A rate of around 30% may be levied on fully imported EVs, aimed at encouraging manufacturers to set up production bases in Thailand and expand the domestic supply chain. These details are part of a plan that the National Electric Vehicle Policy Committee, or EV Board, agreed on in principle last week, which proposes a three-tier excise tax on EVs: fully imported cars face the highest rate, cars produced in Thailand face the lowest rate, and cars assembled domestically but still relying on some imported parts face the middle rate. Dao Securities views this as positive for the Thai automotive industry and the automotive sector over the medium to long term, given the opportunity to expand the share of auto parts sales to EV makers that set up production bases in Thailand. Currently, the revenue share from EV parts remains low, with AH at around 5%, while SAT still has a very small share. For the automotive sector, the brokerage maintains an Underweight investment weighting, while for SAT it recommends a "hold" rating with a target price of 16.50 baht.

Impact on stocks 2

Consumer Discretionary▲ · 2 stocks
AAPICO Hitech Public Company Limited
AH
▲ PositiveDemandrelevance

The three-tier EV excise tax encourages EV makers to build production bases in Thailand, expanding opportunities for AH's auto parts sales to EV makers (currently ~5% of revenue).

Theme Impact 3

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