China’s BYD starts electric car factory in Thailand, the first in Southeast Asia

China’s BYD starts electric car factory in Thailand, the first in Southeast Asia

China’s BYD has opened its first electric vehicle (EV) factory in Southeast Asia located in Thailand which is a rapidly growing EV market.

“Thailand has a clear EV vision and is entering a new era of auto manufacturing” said BYD CEO Wang Chuanfu. “We will bring technology from China to Thailand.”

This new factory is part of a $1.44 billion investment by Chinese EV companies in Thailand and supported by government incentives. Shares of BYD rose by 1.6% in Hong Kong.

Thailand a major car-making and exporting hub has been dominated by Japanese brands like Toyota and Honda. The country plans to make 30% of its 2.5 million vehicles per year as EVs by 2030.

“BYD is using Thailand as a production hub for export to ASEAN and other countries” said Narit Therdsteerasukdi from Thailand’s Board of Investment.

BYD is also building a factory in Hungary for the European market where tariffs on Chinese EVs are up to 38%. The new Thai plant will produce 150,000 vehicles per year including plug-in hybrids.

“We will also assemble batteries and other important parts here” said Liu Xueliang, BYD’s Asia Pacific general manager.

BYD leads Thailand’s EV market with a 46% share. Other competitors include Great Wall Motor and Tesla.