China’s BYD to open factory in Thailand on Thursday

Chinese EV giant BYD is set to open its first Southeast Asian factory in Rayong, Thailand, signalling its commitment to the Thai market. The $486 million facility will lead to price reductions for local consumers amid fierce competition in the EV sector.

BYD is launching its vehicles in Thailand amidst an economic downturn, resulting in lower car sales and more rejected car loans. To address this, BYD is slashing prices, with the Atto 3 SUV receiving a discount of up to 340,000 baht ($9,234).

The factory can produce 150,000 cars per year, and BYD plans to focus on exporting vehicles to Southeast Asia and Europe.

The opening coincides with Chinese EV makers facing new tariffs in Europe, a key export market for China.

The EU has imposed additional tariffs on top of the existing 10 per cent duty to level the playing field for its own brands against China’s heavily subsidised automotive industry.

China denies that the subsidies provided to its EV industry are unfair, crediting their success to technological advancements and strong supply chains.

The 17.4 per cent tariff on BYD vehicles is relatively low compared to others, and analysts expect minimal impact since only 10 per cent of Chinese car exports to Western Europe occurred between January and April.

However, analysts and industry players warn that Chinese carmakers may redirect excess inventory to Southeast Asia due to the European tariffs. Thailand, with its zero import tariffs for EVs produced in local factories, becomes a prime target.

Attribution: The Nikkei Asia