In the past two years, Chinese automakers such as BYD, GAC Aion, and Chery have announced ambitious plans to establish manufacturing facilities in Thailand. BYD and GAC Aion launched operations at their factories in July, contributing to Chinese investments in Thai auto plants, which now exceed $1.4 billion. This marks a significant step in China's strategy to dominate global electric vehicle (EV) markets.
Thailand’s adoption of EVs is steadily growing. The Electric Vehicle Association of Thailand projects that 80,000 battery-electric vehicles (BEVs) will be registered this year. This follows the 76,739 BEVs registered in 2022, which was 6.5 times higher than the registrations in 2021. While the global pace of EV adoption has slowed in 2023, Thailand remains part of a broader trend driven by increased investment and infrastructure development.
Chinese automakers, spearheaded by BYD, are increasingly challenging the dominance of Japanese, American, and German manufacturers in international markets. Since 2020, Chinese EV manufacturers have sought growth abroad, spurred by intense competition and oversupply in their home market. However, geopolitical hurdles have made it difficult to penetrate Western markets like Europe and North America. As a result, they are turning to middle-income countries such as Thailand, Indonesia, Brazil, Malaysia, and Argentina—regions where local auto industries are less competitive and relations with Beijing are relatively cooperative.
In Thailand, Chinese brands are directly competing with long-established Japanese automakers. They are gaining visibility through large-scale marketing efforts, including prominent billboards on highways and new showrooms in Bangkok. Chinese EV production facilities, located within a two-hour drive of the capital, are set to achieve a production capacity of 320,000 vehicles annually once fully operational.
This strategic expansion highlights the growing influence of Chinese automakers in the global EV market, particularly in emerging economies where opportunities for rapid growth and government support for EV adoption are robust. With this momentum, Chinese brands are positioning themselves as major players in Thailand's automotive landscape.
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