Thailand's automotive industry faces a critical turning point: domestic production is shrinking 1.8% this year while EV imports surge (72% of total import value, 69% from China). Kasikorn Research highlights that the government's EV Board is preparing excise-tax incentives to shift manufacturers from imports to domestic production with higher local content. The policy aims to reduce imports, boost domestic output by 2027, and increase value-added, though success depends on effective enforcement of local-content requirements and meeting trading partners' standards.