China's Electric Carmakers Eye Thailand in Next Sales Push
In Europe, a flurry of Chinese carmakers are trying to unseat storied legacy brands. Half a world away and far from the buzz of the Paris motor show, a similar revolution is playing out in Southeast Asia, in Thailand, where China's auto manufacturers are facing off against Japanese incumbents.
In September, China's biggest maker of electric and hybrid cars, BYD Co., announced plans to build its first overseas electric passenger car plant in Rayong, a coastal city southeast of Bangkok. Days earlier, the 10,000th battery-powered car rolled off Great Wall Motor Co.'s production line in the same town while Shanghai-based upstart Hozon New Energy Automobile Co. opened its first Thai showroom in the capital's glittering Central Rama 2 mall.
Chinese automakers aren't just setting up shop and building out supply chains. China is also exporting a record number of new-energy vehicles to Thailand -- some 59,375 units from January through September, up 176% from the same period of 2021, China Passenger Car Association data show. Thailand now ranks third as an export destination for Chinese EVs, behind Belgium and the UK.
One reason for the attraction can be found in Thailand's past, and a willingness to leverage that experience as the world goes green. Thailand's status as the largest auto manufacturing hub in Southeast Asia and No. 10 in the world has won it the moniker of the Detroit of Asia. Its comprehensive supply chain feeds scores of factories, mainly owned by Japanese companies, producing internal combustion engine cars.
In February, Thailand became the first country in the region to offer cash subsidies -- up to 150,000 baht ($4,000) -- for passenger electric cars. The government is mulling battery subsidies to further reduce
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