Country went 100% electric vehicles overnight with a drastic approach
4 hours ago
- Laos banned imports of new gas and diesel passenger cars from June 1, 2026, making almost all new imports electric.
- The ban is driven by economic reasons: Laos relies on hydropower exports and imports all its vehicle fuel, using scarce foreign currency.
- EVs are incentivized with tax exemptions and registration fee cuts, while transport companies must have at least 10% electric fleets by 2026.
- Chinese automakers and Vietnam's VinFast are filling the gap left by combustion vehicles.
- The ban has exemptions for public transport, construction, and specialized vehicles, reflecting charging and income limitations.
- Global EV sales hit 2 million in June, and Southeast Asian nations see electrification as energy security.
- The policy is effective but depends on charging infrastructure and affordable EVs to sustain it.
- Laos' approach is a model for oil-importing countries with cheap domestic power.