Thailand faces an industrial crisis in automotive manufacturing due to a 20-year-old FTA negotiation error that classified Chinese electric vehicles at 0% tariff—mistakenly treating them like golf carts when EV was negligible. Combined with Thailand's 2% excise tax incentive for EVs, Chinese manufacturers gained massive competitive advantage while Japanese producers pay 13-50% excise tax. This threatens Thailand's 30-year automotive supply chain ecosystem as component makers, employment, and investment may relocate to Indonesia, which is aggressively poaching manufacturing bases.
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