Thailand: An Emerging Leader In EV Manufacturing

Share
Thailand: home of temples, pad Thai and EVs
Thailand is attracting global automakers with government incentives and a skilled workforce, cementing itself as a growing 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.

Youtube Placeholder

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.

Eric Ruge, Managing Director of BMW Manufacturing (Thailand) Co. Ltd

"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.
A glimpse inside BYD’s first EV factory outside China. The plant, opened in Rayong, Thailand, in July 2024, will eventually produce 150,000 vehicles annually. (photo: Laurent Malespine).

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.

****** 

Make sure you check out the latest edition of Manufacturing Digital and also sign up to our global conference series - Procurement & Supply Chain 2024 & Sustainability LIVE 2024
******
Manufacturing Digital is a BizClik brand.

Share

Featured Articles

UPDATED VENUE & DATE – Manufacturing LIVE Chicago 2025

Manufacturing LIVE Chicago announces important changes to its venue and date for the co-located event with PSC LIVE and Sustainability LIVE in 2025

The Breakdown of the Global Plastics Treaty isn't the end

The failure of the INC-5 talks has caused anger across the manufacturing sector, but the breakdown of this treaty will not stop efforts to address plastic

Stellantis Plant Shutdown Confirms EV Manufacturing Concerns

Stellantis is shutting down its Luton EV plant due to low demand, vindicating some manufacturers concerns that EV governmental targets are too ambitious

The Highlights of the Rockwell Automation Fair 2024

Digital Factory

TFL Drives Future of Electrification With Buses on Route 358

Sustainability & ESG

Nissan: Striving To Safeguard EV Manufacturing Interests

Sustainability & ESG