China’s largest electric vehicle maker, BYD, will make Thailand its first production center in Southeast Asia. This will likely provide competition to other Chinese brands already present within the country and enable it to learn from an anticipated government-backed surge in demand.
According to Liu Xueliang, BYD’s Asia-Pacific division manager, the corporate plans to construct a right-hand drive electric vehicle factory in Thailand. According to him, the plant may have an annual production capability of 150,000. units. According to Liu, cars produced on the plant will probably be shipped to Europe and ASEAN countries.
Liu spoke at a signing ceremony between BYD and the land seller.
The developer of an industrial estate in Rayong province, positioned about 140 kilometers southeast of Bangkok, WHA Group said it has sold 600 rai (96 hectares) of land on the property. That’s almost 500 of the 1,281 rai estate.
According to Jareeporn Jarukornsckul, co-founder and president of WHA, the remaining 500 rai have been saved for extra Chinese EV supply chain firms and EV parts manufacturers who intend to take a position in Thailand.
These investments, in accordance with Jareeporn, will constitute the “second phase” of development.
She noted that WHA is in talks with one other certainly one of the highest five electric vehicle manufacturers in China.
“With Thailand now equipped with EV infrastructure – supply chain, government supportive policies and strong demand – we are now poised to become an EV manufacturing hub in ASEAN and the world,” Jareeporn said.
Last month, the Investment Board of Thailand approved BYD’s investment privilege. Early last week, a top BOI official said the electrical vehicle maker must “start investing inside three years.”
Electric vehicle sales in Thailand are expected to grow rapidly because of government incentives that will significantly reduce sticker prices. The goal is to draw enough customers to realize economies of scale and encourage investment within the industry.
The subsidy amount for every electric vehicle can reach THB 150,000 ($4,130).
In one other motion, the federal government on June 9 reduced import taxes on electric vehicles from 8% to 2% in exchange for a commitment from manufacturers to eventually move electric vehicle production to Thailand.
By 2030, the proportion of electrical vehicle sales in Thailand is predicted to achieve 30%, making Thailand the middle of electrical vehicle production within the ASEAN region.
BYD, which was founded in February 1995 as a battery manufacturer, is currently present in over 30 industrial parks all over the world. It has a big presence within the fields of rail transport, latest energy, automotive and electronics.
For the primary half of 2022, BYD reported a net profit of RMB 3.5 billion ($504.4 million), greater than thrice the previous 12 months’s result. The company has set a goal of entering greater than 15 other countries after overtaking Tesla and other competitors in domestic sales.
By the top of the 12 months, it hopes to begin selling Dolphin models within the country through a partnership with Rever Automotive (Thailand), an importer of electrical cars from China. There will probably be more EV models.
BYD will profit from the ASEAN-China Free Trade Agreement, in force since 2005, which allows Chinese manufacturers to ship electric vehicles to Thailand duty-free. As a result, Dolphin models will probably be priced at par with comparable Chinese electric vehicles.
The electric vehicle market in Thailand is already dominated by two distinguished Chinese firms. With 5,219 electric vehicles sold in the primary half of 2022, Great Wall Motor (Thailand), which entered the market in 2020, is currently in first place. The owner of the MG brand, Shanghai-based SAIC Motor, has sold 4,500 vehicles in Thailand electrical in the course of the same period.
Rayong Province is positioned within the Eastern Economic Corridor, a big industrial development zone that is a component of the Thai government’s 4.0 plan to raise the country to high-income status by 2036.
