China’s BYD to acquire 20% stake in Thai distributor

Chinese electric vehicle (EV) giant BYD Co. is solidifying its foothold in Southeast Asia with a two-pronged strategy: acquiring a 20 per cent stake in its Thai distributor Rever Automotive Co. and opening its first production facility in the region.

Rever Automotive announced a joint investment agreement on Saturday to enhance their competitiveness in Thailand’s growing EV market.

This comes after BYD’s Rayong Province factory inauguration, following two years of securing land for its Southeast Asian production hub.

The facility boasts an impressive annual production capacity of 150,000 right-hand drive vehicles, catering not only to Thailand’s domestic market but also targeting exports to neighboring Southeast Asian countries.

BYD further revealed that the plant will manufacture key EV components like batteries and transmissions, fostering greater vertical integration within the region.

This investment plan comes on the heels of a meeting between BYD’s chairman and CEO, Wang Chuanfu, and Thai Prime Minister Srettha Thavisin on Friday. Discussions reportedly focused on recent price cuts for BYD models in Thailand, which sparked discontent among existing customers.

BYD, supported by Warren Buffett’s Berkshire Hathaway Inc., is taking advantage of Thailand’s EV tax incentives to establish itself as a leader in the region.

Thailand aims to become Southeast Asia’s top EV production hub by 2030, with a target of 30 per cent of total car production being electric vehicles.

Attribution: Bloomberg