BYD Plans To Build 150,000 Cars A Year In Thailand

BYD, China's largest electric vehicle manufacturer, will establish Thailand as its first Southeast Asian production hub, challenging Chinese brands already present in the kingdom and positioning itself to capitalise on an expected, government-aided surge in demand. BYD's Asia-Pacific division manager, Liu Xueliang, stated that the company plans to build a right-hand drive electric vehicle production centre in Thailand. According to him, the plant's annual capacity will be 150,000 units. "The plant's cars will be exported to ASEAN countries and Europe," Liu said.

Liu was speaking at a ceremony to commemorate BYD's land purchase agreement. WHA Group, a Thai industrial estate developer, announced the sale of 600 rai (96 hectares) of land in Rayong province, about 140 kilometres southeast of Bangkok. That equates to nearly half of the estate's 1,281 rai.

WHA co-founder and chairman Jareeporn Jarukornsckul stated that 500 of the remaining rai "have been spared for other Chinese EV supply chain producers and EV part makers who are about to invest in Thailand."

These investments, according to Jareeporn, will be part of a "second phase" development.

She also stated that the WHA is in discussions with another of China's top five EV manufacturers. "Since Thailand now has EV infrastructure—a supply chain, government policies that support it, and strong demand—we are ready to be the EV production hub of ASEAN and the world," Jareeporn said.

Thailand's Board of Investment approved an investment privilege previously granted to BYD last month, and a senior BOI official said earlier this week that the EV maker must now begin "investing within three years."

Thailand's EV sales are expected to skyrocket as a result of government subsidies that effectively lower sticker prices. The goal is to attract enough buyers to create a scale economy and stimulate investment in the sector.

The subsidy could be worth up to THB 150,000 (MYR 19460) per EV.

In another move, the government reduced import duties on electric vehicles from 8% to 2% on June 9 in exchange for manufacturer promises to eventually bring EV production to Thailand.

These policies are intended to help Thailand become the ASEAN EV production hub, with EVs accounting for 30% of all vehicles sold in the country by 2030.