Chinese electric vehicle giant BYD has just inaugurated its new production plant in Thailand, marking its factory in Southeast Asia.
BYD opens first Southeast Asian factory
According to Reuters, BYD officially launched its new electric vehicle factory in Rayong, Thailand on Thursday.
The Chinese player’s push in Thailand is no longer surprising, considering that the country has advanced as a fast-growing regional market for electric vehicles.
“Thailand has a clear EV vision and is entering a new era of auto manufacturing. We will bring technology from China to Thailand.”
BYD CEO and President Wang Chuanfu declared at the opening ceremony
BYD’s local factory is one of the surges of investment worth over $1.44 billion from Chinese electric automakers seeking to erect production plants in the country. They benefit from significant government subsidies and tax incentives.
“BYD is using Thailand as a production hub for export to ASEAN and many other countries.”
Thailand’s Board of Investment Secretary-General Narit Therdsteerasukdi said while referring to the 10-country Southeast Asian bloc
Production capacity
In hindsight, BYD announced its plans to establish a new production hub in Thailand two years ago.
With an investment of $490 million, the newly opened Thai factory has a capacity to produce 150,000 electric vehicles per year. It will manufacture BYD’s battery-electric and plug-in hybrid models.
The new plant includes processes of stamping, painting, welding, final assembly, and producing car components.
BYD also has plans to produce batteries and other key components for electric vehicles in Thailand.
“We will also assemble batteries and other important parts here.”
BYD’s Asia Pacific General Manager Liu Xueliang
Potential impacts
The right-hand-drive electric vehicle models from the Thai factory can potentially aid BYD in bypassing tariffs in the European Union.
In addition, Thailand is currently the biggest overseas market for BYD. The Chinese NEV giant claimed a 46% share of the country’s electric vehicle industry in Q1 2024. Its new production muscle in the country can further boost BYD’s global NEV sales in the coming quarters.
The new facility is also expected to generate 10,000 job opportunities for the locals. Moreover, BYD’s presence can aid the country and even the entire ASEAN in their shift to clean energy vehicles.
“BYD is a world-leading automobile manufacturer and a pioneer in China’s new energy vehicle industry. BYD’s investment in Thailand, along with its advanced production technology, will drive the development of the new energy vehicle industry in Thailand and across ASEAN.”
Ms. Pimphattra Wichaikul, Thailand’s Minister of Industry
BYD is currently the third top-selling passenger automaker in the country, according to research firm Counterpoint. Its competitors in the local market include Great Wall Motor and Tesla.
Thailand aims to have electric vehicles account for 30% of its annual vehicle production of 2.5 million units by 2030, according to a government plan.
