On June 14th, according to Nikkei Chinese website, Chinese electric vehicle (EV) manufacturers are launching a fierce offensive in Thailand, but Japanese manufacturers have a weak presence.
According to AutoLife Thailand’s statistics, in March 2023, BYD will occupy 39% of the Thai EV market, with Tesla ranking second at 24%. SAIC (15%), NETA (11%), and Great Wall Motors (3%) rank 3 to 5 respectively. The overall market share of Chinese brands has reached about 70%.
According to reports, Thailand’s electric vehicle sales in March reached 6,262 units, an increase of 9.7 times from the same period last year. BYD’s ATTO 3 (Yuan PLUS overseas version) alone accounted for nearly 40% of the market share. The model has been on sale in Thailand since November 2022 and quickly surpassed other models to take the lead.
In addition to BYD, SAIC also announced in May that it would establish a joint venture with Thailand’s largest conglomerate, Charoen Pokphand Group, to sell pure electric vehicles under the MG brand in Thailand. SAIC is one of the earliest EV manufacturers to enter the Thai market and has already delivered 10,000 electric vehicles in Thailand. Changan Automobile also previously announced that it would invest 9.8 billion baht to establish an electric vehicle factory with an annual production capacity of 100,000 vehicles in Thailand, as well as produce vehicle batteries and other products.
Compared with Chinese manufacturers, Japanese manufacturers seem to be struggling in Thailand.
Toyota previously launched its main pure electric vehicle, the bZ4X, in Thailand, but according to AutoLife data, only two units were sold in March. Another Japanese car giant, Nissan, sold only six units of its LEAF in Thailand in a single month. It is worth noting that although the performance of Japanese cars in the EV market is dismal, they account for 80% of Thailand’s overall new car sales.
Japanese media analysts believe that this phenomenon is related to multiple factors. From 2022, the Thai government will pay up to 150,000 baht in sales subsidies for each electric vehicle produced locally. Passenger car tariffs have been lowered from 8% to 2%, and pickup trucks enjoy tax exemptions. These measures mean that Chinese EVs, which are already relatively cheap, have no price difference with traditional fuel cars.
On the other hand, China and Thailand have a deep traditional friendship, and there are many overseas Chinese conglomerates in Thailand, which has enabled Chinese EV manufacturers to enter the Thai market early and easily. In addition to BYD, SAIC, and Changan mentioned above, Great Wall Motors also acquired General Motors’ Thai factory in 2020 and proposed a plan to invest 22.6 billion baht in renovation, with local production expected to start as early as 2024.
Regarding the continuous expansion of Chinese manufacturers, Japanese media finally pointed out that Japanese manufacturers should first clarify their response strategies before engaging in long-term competition with Chinese manufacturers, who are pioneers and leaders in the Thai market.
