Chinese automakers deepen footprint in Thailand

Summary

Chinese automakers are accelerating their presence in Thailand. As of the end of May, seven Chinese automakers including BYD, Neta, GAC Aion, Changan, Chery, SAIC MG, and Great Wall Motors have built factories in Thailand, with a combined capacity of over 600,000 vehicles. The International Energy Agency reports that Chinese electric vehicles have contributed significantly to the expansion of emerging markets, accounting for 75% of Thailand's EV market.

Geographically, Thailand lies at the centre of Southeast Asia, backed by a market of 680 million people. On 20 May, China and ASEAN concluded negotiations for the FTA version 3.0, aiming to promote standard cooperation and trade facilitation. In policy, Thailand's EV 3.0 scheme requires automakers to compensate local production, attracting investment.

In terms of market potential, Thailand's auto sales in April 2025 rose 0.97% year-on-year to 47,190 units, the first increase in nearly two years. Automakers are shifting to full industry chain layout: Great Wall's battery subsidiary SVOLT and other parts enterprises have set up operations; the number of Chinese auto parts legal entities in Thailand has reached 165. GAC Aion plans to build 200 stations with 1,000 charging piles in 100 cities by 2028.

BYD's Thailand factory creates approximately 10,000 jobs and cooperates with universities for training. Ji Xuehong, director of the Industrial Innovation Research Centre at North China University of Technology, said Thailand and Southeast Asia have great potential, and Chinese automakers should deepen localisation. Changan's Thailand factory will export to Southeast Asia and global right-hand drive markets; Great Wall plans to expand capacity and export to Brazil, Australia, and New Zealand.

Commentary

Chinese automakers are deepening their layout in Thailand, planning to export EVs produced there to right-hand drive markets such as New Zealand. This has dual implications for New Zealand small and medium enterprise owners. On the opportunity side: EVs produced by Great Wall, Changan and other brands in Thailand are expected to enter New Zealand at more competitive prices, offering new brand representation and differentiated product opportunities for local car dealers and importers.

Also, demand may grow for small and medium enterprises in charging pile installation, maintenance and repair due to the acceleration of electrification. On the challenge side: the influx of many Chinese brands could intensify market competition and squeeze the share of existing Japanese and European brands. Local small and medium dealers need to adjust inventory mix in advance and improve after-sales service quality.

Moreover, the upgrade of the China-ASEAN FTA version 3.0 brings standard cooperation and trade facilitation; although not directly affecting New Zealand, trade transiting through ASEAN may face fiercer competition. In the long run, the full industry chain layout of Chinese automakers in Thailand will reduce production costs, giving vehicles exported to New Zealand a clear price advantage. New Zealand SME owners should closely monitor supply chain changes and explore cooperation opportunities with Chinese automakers in Thailand, such as parts procurement or aftermarket collaboration.

Keywords: Chinese automakers, Thailand, electric vehicles, production capacity, ASEAN, FTA version 3.0, new energy vehicles, export, full industry chain layout, charging piles

Source: People's Daily Online International