![[2] Laos said that it will temporarily suspend imports of petrol- and diesel-powered vehicles until the end of 2026.](https://eco-business.imgix.net/ebmedia/fileuploads/jean-baptiste-nore-4ds0e_VJSOY-unsplash_uohHYaF.jpg?ar=16%3A10&auto=format&fit=crop&ixlib=django-1.2.0&q=85&width=320)
Laos has announced that it will temporarily suspend imports of petrol- and diesel-powered vehicles until the end of 2026 as it seeks to accelerate adoption of electric vehicles (EVs), reduce fuel imports and tighten oversight of the automotive sector.
According to a government notice published by its state media, imports of fuel-powered vehicles would be banned from 1 June, once documentation is completed by the Ministry of Public Works and Transport and other agencies.
The ban will run through the rest of 2026, though exemptions will apply to passenger transport vehicles, machinery, trucks used for specific production and development projects, and specialised professional vehicles.
The move marks one of the strongest policy steps yet by Laos to shift its transport sector towards electric mobility. The government has set a target for EVs to account for more than 30 per cent of vehicles on the road by 2030.
Laos, a hydropower-rich country that imports petroleum products, has promoted EVs as a way to cut reliance on fossil fuels, ease pressure on foreign currency reserves and reduce emissions from transport.
The International Energy Agency has said electric car sales are rising rapidly in emerging markets outside the world’s three largest EV markets — China, Europe and the United States — with strong growth expected to continue in Southeast Asia.
Under the new directive, the Ministry of Industry and Commerce has been instructed to establish a standardised pricing structure for EVs sold in Laos, covering ex-factory prices, transport costs, taxes, duties and approved profit margins for each vehicle category.
The measure is intended to prevent excessive price increases and market manipulation as restrictions on petrol and diesel vehicle imports lift demand for EVs. Companies found exploiting the transition through unfair pricing practices could face fines and other penalties.
The government also plans to introduce tax incentives to support wider EV adoption. Fully electric vehicles valued at less than US$50,000 will be exempt from excise tax, while authorities will study appropriate rates for more expensive EVs and vehicles using other forms of alternative energy.
Officials said the tax structure would support clean energy goals while taking into account foreign currency priorities.
The government has also pledged to expand charging infrastructure by providing land and technical support to private investors interested in installing charging stations.
A policy report by the Global Green Growth Institute said Laos would need stronger charging infrastructure, technical standards and financial mechanisms to support a larger EV fleet.
The directive also requires all vehicle sales and related payments to be processed transparently through the banking system, as part of efforts to improve financial oversight and regulatory compliance in the automotive sector.
Authorities have been instructed to study measures to support vehicle importers affected by the ban and minimise financial losses during the transition.
