Honda is requesting the Thai government reduce import tariffs on CBU vehicles (currently ~80%) and extend the hybrid excise tax incentive deadline for its 4 non-compliant models. The company is investing 12 billion baht to launch 2 new hybrid models by 2029, targeting production capacity of 150,000 units annually by 2027. High import taxes and new strict local-content requirements are pressuring profit margins and consumer affordability for both imported and locally-assembled vehicles. This reflects ongoing sector-wide tension between government localization mandates and Japanese automakers' competitiveness against Chinese EV entrants.