Honda Thailand Seeks Import Tax Relief for Japanese-Built Vehicles

Honda Automobile (Thailand) is urging the Thai government to consider reducing import taxes on vehicles manufactured in Japan. The company’s president and CEO, Koji Iwanami, stated that current tax structures make it difficult to price Japanese-imported models competitively in the Thai market, according to the original publisher, paultan.org.

The push for tax relief comes as Honda’s Prachinburi assembly plant nears its full production capacity of 110,000 units per year. The facility currently handles the manufacturing of the City sedan and hatchback, the Civic, the Accord, the HR-V, and the CR-V. These vehicles are intended both for local consumption and for export to over 70 countries worldwide.

Iwanami noted that reducing these taxes would allow the automaker to introduce a broader range of models to Thai consumers, specifically citing the Jazz and the Freed. He emphasized that lowering these duties would not jeopardize local employment or negatively impact regional suppliers. Instead, Honda intends to expand its local manufacturing capability, with plans to increase annual plant capacity to 150,000 units to accommodate up to eight models.

This request highlights a growing disparity in the automotive import landscape, as electric vehicles and range-extended EVs currently enjoy tax exemptions when imported from specific countries. This policy advantage has already seen other manufacturers bring in models such as the Geely Starray EM-R.

For Malaysian readers, this situation underscores the ongoing challenges surrounding Completely Built-Up (CBU) import duties within Southeast Asia. Much like in Malaysia, Thailand’s high tax structure on non-EV imports continues to be a major hurdle for automakers looking to diversify their lineups. The outcome of Honda’s lobbying efforts could serve as an indicator for how regional governments balance local assembly requirements with the need to provide consumers with wider vehicle options.