By LIU Jiaxin
Chinese automakers looking to expand overseas are choosing to build factories in Thailand. Two weeks ago, Bangkok announced that Chinese EV maker Hozon Auto had signed an agreement with a local company to manufacture its Neta V from next year.
On April 30, SAIC Group paraded its plans for an industrial park in Thailand, following similar Southeast Asian adventures by BYD and Changan Auto.
In Q1, China exported more than 1 million cars, up 58.1 percent year on year. That takes China past Japan to become the world’s biggest vehicle exporter. As competition in the domestic EV market has reached a naturally high intensity, Thailand, with its mature automobile industry and potential demand for EVs, is an ideal place to go.
BYD started selling its ATTO 3 in Thailand in November last year. By the end of March, more than 3,000 were registered, nearly 10 percent of all registered pure EVs in the country.
The BYD factory in Rayong has already made more than 10,000 cars.
Thailand, the second-largest economy in Southeast Asia, hosts production lines for many leading global automakers.
Sixty years ago, when Japanese automakers had not yet established their positions in the international market, Toyota, Nissan, and Honda had already started expanding production in Thailand.
Thailand entered the automotive supply chain system at an early stage, making it the world's tenth-largest automotive producer, ahead of countries like France and the United Kingdom.
In 2021, Bangkok declared that by 2030, 30 percent of domestically-produced vehicles would be zero-emission.
In addition to attracting automakers, the Thai government is also courting battery makers to position itself as a production and supply base for EVs and components.
For Chinese automakers, Thailand is a good bridgehead to conquer Southeast Asia. Last year, more than 3.4 million cars were sold there, up 23 percent.
