Thailand: An Emerging Leader In EV Manufacturing
Thailand is rapidly emerging as a major force in the global EV market, attracting leading automotive giants from around the world.
Government incentives and strategic investments are driving this transformation, establishing Thailand as a critical manufacturing hub for EVs and advanced battery technologies.
BYD vs BMW: Both Choosing Thailand
When it comes to EV manufacturing, two major players are making waves: BYD and BMW.
Despite their vastly different origins — BYD as a newer Chinese company and BMW as a renowned 108-year-old German brand — both have strategically chosen to expand their EV production in Thailand.
This decision underscores Thailand’s increasing significance as a production center for new energy vehicles.
Thailand's appeal: incentives and infrastructure
The Thai government's proactive policies, including tax breaks, subsidies and other incentives, have attracted numerous automakers to invest in the country.
The measures aim to transform Thailand into a leading global hub for producing battery electric vehicles (BEVs) and hybrid technologies.
Investments in Thailand's EV sector include:
BYD's major investment: On 4 July 2024, BYD opened its state-of-the-art factory in Rayong, within Thailand's Eastern Economic Corridor, investing approximately US$900m. BYD expects the facility to play a crucial role in BYD's international expansion, particularly in the ASEAN market
Chinese automakers' presence: Alongside BYD, other major Chinese companies such as Great Wall Motor, Hozon New Energy Automobile, SAIC Motor, Chongqing Changan Automobile, GAC Aion and Chery Automobile are setting up production facilities in Thailand
Isuzu's BEV unveiling: Japan's Isuzu Motors announced plans to build its first BEV, a version of the D-Max pickup truck, in Thailand. This marks a significant step for Isuzu, which holds a 50% share of the Thai pickup market.
"I follow these topics very deeply, but even I was surprised at how the market has developed here in the past year," says Eric Ruge, Managing Director of BMW Manufacturing (Thailand) Co.
"Customers are marching in the direction of battery EVs."
Automotive manufacturers heading to Thailand
Thailand's burgeoning EV sector is attracting investment from various international automakers, including:
- Toyota and Honda: Japanese automakers are exploring hybrid and EV production in Thailand, which aligns with their clean energy goals
- Hyundai: The South Korean automaker received approval to invest 1 billion Thai baht — approximately US$2.8m — in the local assembly of BEVs, set to start in 2026
- Mercedes-Benz and BMW: Both German luxury carmakers have been assembling EVs and batteries in Thailand since 2022, with BMW set to launch its first locally-made EVs in 2025.
A nation supporting EV manufacturing
Thailand's efforts extend beyond vehicle production. The country is building a localised supply chain to support the sector's growth, as demonstrated by:
- Battery production: In March 2024, SVOLT Energy Technology — in partnership with Thai energy company Banpu Next — began producing EV battery packs in Thailand
- Supply chain development: Chinese automaker Changan announced partnerships with local parts manufacturers AAPICO Hitech and Thai Summit Group as part of a procurement plan worth US$570,000 (20 million baht) to support local EV production.
Thailand's EV manufacturing market
Thailand's EV manufacturing market has experienced significant growth. In 2023, EV sales surged nearly eightfold, reaching 76,000 units and accounting for 12% of all vehicles sold.
By the first quarter of 2024, the market share climbed to 14%. This rapid expansion highlights Thailand's rise as a leader in Southeast Asia's EV industry.
Thailand aims to achieve its 30@30 strategy, targeting 30% of vehicles manufactured by 2030 to be EVs. This goal includes private cars, trucks, and buses, further reinforcing Thailand’s role as a crucial player in the global EV market.
The role of the workforce & policy
Thailand's ability to attract investment goes beyond government incentives.
The country's skilled workforce and the efficient operations at facilities like BMW's Rayong plant play a crucial role in its appeal. BMW’s Rayong plant, notable for producing both cars and motorcycles, demonstrates the high manufacturing standards that Thailand maintains.
Thailand’s strategic vision for the EV sector, driven by strong government policies and a talented workforce, is transforming the nation into a major global hub for EV production. With substantial investments from top automakers and a focus on building a complete EV ecosystem, Thailand is set to become a key player in the global shift to clean energy vehicles.
As Thailand continues to draw in major industry players, its influence on the global EV market will only grow, solidifying its position as a leader in sustainable vehicle manufacturing.
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