Chinese EV manufacturers dominate Thailand’s market with discounts angering existing customers. Japanese automakers retreat, while the EV industry grows, raising concerns for local car parts manufacturers amidst global competition and overcapacity in China.
Chinese EV Manufacturers Disrupt Thailand Auto Industry with Aggressive Pricing
Chinese manufacturers of electric vehicles (EVs) have quickly gained a significant market share in Thailand’s auto industry by offering substantial discounts. This strategy, while successful in capturing market share, has angered customers who paid higher prices before the discounts were introduced. Market leader BYD has cut prices multiple times due to intense competition, causing recent buyers to demand compensation for the sudden drop in prices. The Thai government has intervened by setting up a committee to address the issue, and BYD has promised compensation to affected customers.
Japanese Carmakers Retreat While Chinese EV Makers Expand in Thailand
On the other hand, Japanese carmakers like Suzuki, Subaru, and Honda are scaling back their operations in Thailand due to slower sales, while Chinese companies like BYD are ramping up investments. With Chinese EV manufacturers like BYD opening manufacturing plants and investing heavily in Thailand, there is speculation that they could potentially replace Japanese carmakers in the market in the future. The Thai government aims to position the country as a hub for EV investment, with the goal of producing 30 percent of total car production as EVs by 2030, despite concerns over the impact on local car parts manufacturers who cater to traditional internal combustion engine vehicles.
