In the past two years, China's electric vehicle manufacturers are gradually becoming an important force in the world's electric vehicle field。

China's car companies not only "fight" each other at home, fierce competition has forced more and more car companies to turn their attention to overseas。They not only expand exports, but also choose to build production centers overseas, and Southeast Asia is one of their most important sea "battlefields."。

In Southeast Asia, Thailand is the largest car producer and exporter and the second largest car sales market after Indonesia.。Japanese automakers have dominated Thai cars for decades, leading Japanese automakers to see Thailand almost as an extension of their home market。But today, the Chinese electric car wave has begun to reshape Thailand's auto industry。

    

The Transforming Thai Car Market

     

Chinese electric car makers have brought in their suppliers in Thailand, while local Thai companies, including those with long-standing ties to Japanese companies such as Siam Motors, are seeking new partnerships.。

Thailand's Siam Motors, which partnered with Nissan in 1962, forged a decades-long profitable relationship with the Japanese company, which grew from a car dealer to a car pioneer in Thailand.。Siam Motors, whose annual revenue has risen to $7 billion, is no longer satisfied with its partnership with Nissan and is actively looking for other opportunities。

Siam Motors vice president Sebastien Dupuy said the company is in talks with several Chinese automakers about potential partnerships, particularly in high-end electric vehicles.。"Electric vehicles will be a good growth point," he said. "This market is growing and we want to seize this growth opportunity.。"

The idea of Siam Auto reflects the rapid changes that are taking place in the Thai automotive sector, with Chinese automakers, including BYD and Great Wall Motors, investing as much as 14 percent in Thailand since 2020..$400 million, opening up a new electric vehicle battlefield in the local market and dominating。

Registration data showed that 18,481 electric vehicles were sold in Thailand between January and April, with BYD occupying the leading position with more than 7,300 vehicles, followed by China's SAIC, United Motors and the United States' Tesla.。

By contrast, Japanese automakers are a bit "lonely" due to slow progress in electric vehicles.。Only 11 new registered electric cars came from Toyota this year。However, Toyota still dominates the fuel vehicle sector, with Isuzu and Honda accounting for nearly 70% of total car and truck sales in Thailand last year.。

The head of Thailand's consulting department at the Nomura Institute of Integrated Research says Chinese brands could take at least 15 percentage points of market share from Japan over the next decade by offering affordable electric vehicles.。He believes that Japanese car companies can only target some high-end markets。

       

Low-cost electric vehicles are highly sought after in emerging markets

     

Over the past decade, Toyota Group and related subsidiaries have invested nearly $7 billion in Thailand, employing about 275,000 people.。The company is currently considering producing electric cars in the country.。Toyota said its electric bZ4X car, which went on sale in Thailand last year, had received 3,356 advance orders.。The person in charge also said that or will launch electric pickup trucks, Goldman Sachs believes that "they increasingly need to consider the expansion of other product areas."。"

Although the proportion of electric vehicles in the current market in Thailand is very low, but the growth is very fast。Only about 1 percent of the nearly 850,000 new cars registered in Thailand last year were electric, according to government figures.。But between January and April this year, the proportion has risen to more than 6%。

Soumen Mandal, a senior analyst at Counterpoint, said: "The automotive industry in Southeast Asia is dominated by Japanese OEMs.。However, as the focus shifts to electric vehicles, they face stiff competition from China, South Korea and a handful of local players.。Affordability remains a major bottleneck for EV growth in the region。But things are changing as Wuling, BYD, Great Wall Motor and SAIC launch some cheaper electric car options。Unlike developed electric vehicle markets such as the United States and Europe, low-cost electric vehicle options are increasingly popular in emerging markets such as Thailand and Indonesia。According to Counterpoint's global passenger car forecast, the Southeast Asian electric vehicle market will grow rapidly. By the end of this decade, electric vehicle sales are expected to exceed the 3.5 million mark, with a compound annual growth rate of 124%。"

"We realized that if we want to be an electric vehicle hub in the region, we can't just build the vehicle assembly industry," said Narit Therdsteerasukdi, secretary general of the Board of Investment (BOI) in Thailand.。"

Thailand aims to make about 30 percent of its 2.5 million vehicles produced annually electric by 2030.。The Thai side also hopes to become a major regional car production center and is actively seeking investment.。

   

Chinese car companies "pioneers have poured into" Thailand

  

The "going to sea" of Chinese car companies and Thailand's "attracting investment" hit it off。The investment of Chinese car companies is supported by the local government, including land, personnel, taxes and so on.。Nari has visited China several times in recent months。As of May 31, the BOI had approved 14 projects for 13 companies with an annual capacity of approximately 27.60,000 electric cars。At present, Chinese car companies have overtaken Japan as the largest foreign investor in Thailand.。

In 2020, Great Wall Motors has begun to "bet" on Thailand。At the time the company acquired a plant from General Motors and decided to spend 22.6 billion baht (about 6.$500 million) to make it a regional production center for electric and hybrid vehicles。

The news pointed out that Great Wall Motors will start producing the popular Ora Good Cat all-electric car in Thailand next year, and introduce electronics, powertrains and seats produced by its subsidiaries MIND Electronics, HYCET and Nobo Auto.。

Great Wall's Euler Good Cat was Thailand's best-selling electric car last year. According to information on the company's website, the cheapest version is currently priced at about 82.850,000 baht while the Toyota Corolla Altis sells for 89.4 baht, the Yaris Ativ sells for 54.9 baht。

Narong Sritalayon, managing director of Great Wall Motor Thailand, said Great Wall Motor chose Thailand as a regional center for electric vehicles because of the country's strong infrastructure, supplier and talent base, and growth potential.。"You want to enter a market that has buying power and can support your future growth plans, especially in new business areas such as electric vehicles," he said.。He also revealed in May that Great Wall Motor plans to invest up to $30 million in a new battery pack assembly plant in Thailand and is considering setting up a local R & D center to work on battery-powered pickups.。

In addition, SAIC's MG Motor has established a partnership with Thai company Charoen Pokphand Group.。The company said in April that it would invest 500 million baht (about 14 million U.S. dollars) to expand its existing electric vehicle parts and battery manufacturing plant.。

It is understood that Chinese electric car giant BYD will also invest 17.9 billion baht (about 5.$100 million) to build a new plant in Thailand。It is reported that the plant will start production from 2024, when it can produce 150,000 passenger cars a year, some of which will also be exported to Southeast Asia and Europe.。United Motors is also working with Bangchan General Assembly in Thailand to produce the electric Neta V model locally starting next year.。

    

Under the tide of going to Thailand, some car companies are "rubbing their hands."

    

In addition to those that have already started investing, there are some car companies that are "gearing up" to invest in Thailand.。Several deals are in the pipeline, according to the BOI, which has been seeking support from Chinese automakers.。

According to BOI, Changan Automobile will invest 9.8 billion baht (about 2.$800 million) to build a local electric car factory。At the end of June, Nali had brought the team to Changan Automobile to discuss exchanges.。Nari said that BOI has communicated with Changan Automobile executives many times and is interested in Changan Automobile's new energy vehicle products such as Avita, Deep Blue S7, and Deep Blue SL03.。At the same time, in order to express the sincerity of cooperation with Changan Automobile, BOI has made all-round customization for Changan Automobile from preferential tax policies, land use, personnel recruitment and entry and exit policies, and foreign exchange control.。

In addition, GAC Group's subsidiary, GAC Aon, is planning to invest more than 6.4 billion baht (about 1.$800 million) to produce electric cars in Thailand。Chery Automobile is also "very interested" in investing in Thailand and plans to enter the Thai market early next year.。In addition, according to media reports, China's Geely is also in the early stages of planning to enter Thailand。

According to Vantage, the global electric vehicle market is worth 1,935 in 2022.500 million dollars。By 2030, the electric vehicle market is expected to grow to a staggering $693.7 billion, with a compound annual growth rate (CAGR) of 17.3%。

Currently, China, the United States and the European Union dominate the global electric vehicle market。According to Tridens Technology, electric vehicles are expected to account for 60% of total car sales in China, the European Union and the United States by 2030。And in some developing countries, such as Thailand and other emerging countries in Southeast Asia, electric vehicles are just getting started。

The market prospect of electric vehicles in these countries is very broad, and Chinese car companies have invested heavily in this "blue ocean"。However, investment is only the first step in the competition, and it remains to be tested by time who can have the last laugh.。