Laos Halts Fuel-Powered Vehicle Imports, Aims for 30% EVs by 2030

Amid oil supply disruptions caused by tensions in Iran, the Lao government has temporarily suspended imports of gasoline-powered vehicles and aims to raise the share of electric vehicles (EVs) to 30% of the country’s total vehicle fleet by 2030. Currently, there are only 17,357 registered electric and hybrid vehicles in Laos—accounting for just 0.5% of the nation’s approximately 3 million motor vehicles. The government imposes a 3% consumption tax on EVs, while gasoline-powered cars with engine displacements between 1,000cc and 3,000cc face double-digit consumption tax rates. Additionally, the government has mandated that transport companies replace at least 10% of their fleets with electric vehicles by the end of this year. Laos currently has around 120 EV charging stations, half of which are concentrated in and around the capital, Vientiane. According to data from the Japan External Trade Organization (JETRO), Laos’ petroleum reserves as of early March were sufficient for only two days.