BYD, a Chinese automaker, has inaugurated its first electric vehicle plant in Southeast Asia, specifically in Thailand. This move is part of Chinese automakers’ efforts to expand their presence in the rapidly growing regional EV market.
The new $486 million factory in Rayong, south of Bangkok, will create job opportunities for around 10,000 workers and have the capacity to produce 150,000 vehicles annually, as reported by the Associated Press. During the opening event, Wang Chuanfu, the CEO and president of BYD, presented a BYD Dolphin to a charitable foundation associated with the Thai royal family.
“Thailand has a clear vision for EVs and is entering a new phase of automobile manufacturing,” Wang stated during the ceremony. “We will transfer technology from China to Thailand.” As part of the celebration, BYD is offering significant discounts on its Dolphin and Atto 3 SUV models to customers.
The establishment of the BYD plant underscores the company’s focus on Southeast Asia, a region where EV sales have more than doubled in the first quarter of 2024 compared to the previous year, according to data from Counterpoint Research. BYD led the EV market in this period, accounting for 47 percent of sales, followed by Vietnam’s VinFast.
This factory is just one example of the substantial investments made by Chinese EV manufacturers in Thailand, totaling over $1.44 billion, according to Reuters. Other Chinese companies like Hozon New Energy Automobile, Changan Automobile, Great Wall Motor, and SAIC Motor have also set up factories in the country.
The Thai government’s incentives, including subsidies and tax breaks, have attracted Chinese firms to the region in an effort to transition 30 percent of the country’s annual production of 2.5 million vehicles to EVs by 2030. This has led to a significant market shift, with Chinese companies dominating EV sales and traditional Japanese and Korean firms seeing a decline in sales of internal combustion engine vehicles.
BYD, currently competing with Tesla as the world’s largest EV manufacturer, has gained market share in Southeast Asia by collaborating with local industry leaders. The competition between EV manufacturers is intensifying, as countries in Southeast Asia vie to attract foreign investments in EV and related industries.
The inauguration of the BYD plant coincided with the opening of Indonesia’s first electric battery plant, a joint venture between LG Energy Solution and Hyundai. This $1.1 billion facility in West Java province has the capacity to produce 10 gigawatt-hours of battery cells annually, supporting the production of Hyundai and Kia vehicles in Indonesia.
Indonesia aims to leverage its resources, such as nickel and other minerals, to establish a robust EV manufacturing ecosystem. President Joko “Jokowi” Widodo expressed confidence in the country’s ability to compete in the global EV market due to its abundant mineral resources.