Thailand’s EV backlash shows why Malaysia’s caution is justified

Thailand’s latest automotive debate deserves close attention in Malaysia because it exposes a basic policy problem: EV growth can look impressive on paper while weakening the industrial base underneath it.

Thailand’s EV backlash shows why Malaysia’s caution is justified. Thailand’s latest automotive debate deserves close attention in Malaysia because it exposes a basic policy problem: EV growth can look impressive on paper while weakening the industrial base underneath it. According to reports, 10 Thai automotive groups representing more than 1,500 businesses are now pushing for tougher protection against fully imported EVs. Their proposals include a 32% excise tax on imported EVs, import quotas tied to local production, and stricter local-content rules. Their complaint is straightforward: cheaper Chinese EV imports are eroding local production and reducing orders for Thai parts makers. They also say producing vehicles in Thailand costs about 30% to 40% more than importing them from China. That matters because Thailand is not a weak automot...