China’s BYD Opens Electric Vehicle Factory in Thailand

China’s BYD inaugurated its first electric vehicle (EV) plant in Southeast Asia on Thursday, establishing a significant presence in the rapidly growing regional EV market. The new factory is located in Rayong, Thailand.

BYD’s Strategic Move into Southeast Asia

BYD CEO and President Wang Chuanfu highlighted Thailand’s commitment to EV development at the opening ceremony, stating, “Thailand has a clear EV vision and is entering a new era of auto manufacturing. We will bring technology from China to Thailand.”

This investment is part of a larger wave exceeding $1.44 billion from Chinese EV manufacturers, who are capitalizing on Thailand’s government subsidies and tax incentives to set up factories.

Market Impact and Future Plans

Following the announcement, BYD’s Hong Kong-listed shares (1211.HK) rose by 1.6% to HK$235. Thailand, a major auto assembly and export hub traditionally dominated by Japanese manufacturers like Toyota, Honda, and Isuzu, is shifting towards EV production. By 2030, Thailand aims for 30% of its annual vehicle production to be EVs.

BYD’s Production Goals and Export Strategy

Narit Therdsteerasukdi, secretary-general of Thailand’s Board of Investment, mentioned that BYD plans to use Thailand as a production hub for exporting to ASEAN and other countries.

The $490 million facility, announced two years ago, will have a production capacity of 150,000 vehicles per year, including plug-in hybrids. The right-hand-drive EVs produced at this plant will potentially help BYD circumvent EU tariffs on China-made vehicles.

Expanding Global Footprint

In addition to its Thai plant, BYD is also establishing its first European production base in Hungary, set to launch operations in three years. This facility will produce EVs and plug-in hybrids for the European market, addressing EU tariffs that impose up to nearly 38% on Chinese-made EVs. BYD’s China-made EVs will incur tariffs of about 17%.

BYD’s Market Leadership in Thailand

Thailand represents the largest overseas market for BYD, commanding a 46% share of the country’s EV segment in the first quarter. BYD is the third-largest player in Thailand’s passenger car market, competing with other EV manufacturers such as Great Wall Motor and Tesla, which also have a presence in Thailand.

Future Production Plans

“We will also assemble batteries and other important parts here,” said Liu Xueliang, BYD’s Asia Pacific general manager, indicating plans to enhance the production capabilities of the new plant.