BYD launches first EV factory in Southeast Asia

Source：BYD Release Date：2024-11-14 66

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BYD, the world’s largest electric vehicle (EV) maker, opened its first EV manufacturing plant in Thailand, marking a major milestone in Southeast Asia’s rapidly growing EV market. This facility is the company’s first in the region, reinforcing BYD's position as a dominant player in the market.

At the opening ceremony, BYD’s CEO, Wang Chuanfu, expressed enthusiasm for Thailand’s clear vision for EV development, stating, “Thailand is entering a new era of auto manufacturing. We will bring technology from China to Thailand.” The move is part of a larger trend of Chinese EV makers investing heavily in the region, with more than US$1.44 billion flowing into Thailand’s EV sector, fueled by government subsidies and tax incentives.

The Thai plant, worth US$490 million, is a significant addition to the country’s auto assembly industry, which has traditionally been led by Japanese automakers like Toyota, Honda, and Isuzu. Thailand, known as a key regional auto hub and export center, has set ambitious goals for EV adoption, aiming to have 30% of its 2.5 million vehicles produced annually be electric by 2030.

According to Narit Therdsteerasukdi, secretary-general of the Thailand Board of Investment, “BYD is using Thailand as a production hub for export to ASEAN and other countries.” In addition to its expansion in Southeast Asia, BYD is also building its first European production base in Hungary, set to open in three years, to circumvent tariffs on Chinese-made EVs. European tariffs on Chinese-made EVs are as high as 38%, while vehicles produced in Thailand will face a more favorable tariff rate of 17%.

The Thai facility is expected to produce 150,000 vehicles annually, including both electric vehicles and plug-in hybrids. The plant will manufacture right-hand drive vehicles, making it possible for BYD to avoid EU tariffs on Chinese-made models. Moreover, the factory will assemble batteries and other key components, strengthening BYD’s footprint in the region.

BYD has already made significant strides in Thailand, with a commanding 46% share of the country's EV market in the first quarter of 2024. This positions it as the third-largest player in Thailand’s passenger car segment, ahead of competitors such as Great Wall Motor, which also has a production facility in Thailand, and US automaker Tesla.

This new plant underscores BYD's commitment to leveraging Thailand as a key production hub in its global expansion strategy.

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