Author: Chayut Setboonsarng
RAYONG, Thailand (Reuters) – China’s BYD opened an electric vehicle factory in Thailand on Thursday, the automaker’s first in Southeast Asia. leader.
BYD CEO and President Wang Chuanfu said at the opening ceremony: “Thailand has a clear vision for electric vehicles and is entering a new era of automobile manufacturing.” “We will bring Chinese technology to Thailand.”
The BYD factory is part of a wave of investment worth more than $1.44 billion by Chinese electric vehicle makers in building factories in Thailand, helped by government subsidies and tax incentives.
Hong Kong-listed shares of BYD, the world’s largest electric car maker, rose 1.6% to HK$235 after hitting a one-week high.
Thailand is a regional vehicle assembly and export hub long dominated by Japanese automakers such as toyota Automotive (NYSE: ), Honda Motor Corporation (NYSE: ) and Isuzu Motors.
According to government plans, the country aims to convert 30% of its annual production of 2.5 million vehicles to electric vehicles by 2030.
“BYD is using Thailand as a production hub for exports to many other countries in the Association of Southeast Asian Nations,” said Narit Therdsteerasukdi, secretary-general of Thailand’s Board of Investment, referring to the group of 10 Southeast Asian countries.
BYD is building its first European production base in Hungary as part of its overseas expansion.
BYD’s factory will be put into operation within three years and will produce electric vehicles and plug-in hybrid vehicles for the European market. The European Commission has imposed tariffs of up to nearly 38% on electric vehicles made in China.
BYD’s China-made electric vehicles will incur tariffs of about 17%.
The massive Thai factory, announced two years ago, is worth $490 million and has an annual production capacity of 150,000 vehicles, including plug-in hybrids.
The factory’s production of right-hand-drive electric vehicles could potentially allow BYD to circumvent EU tariffs that apply to cars made in China.
“We will also assemble batteries and other important parts here,” said Liu Xueliang, general manager of BYD’s Asia-Pacific region.
Thailand is BYD’s largest overseas market, accounting for 46% of the country’s electric vehicle market in the first quarter, making it the third largest market in the passenger car sector, according to research firm Counterpoint.
Other EV rivals in the local market include Great Wall Motors, which also has a production plant in Thailand, and U.S. automaker Tesla (NASDAQ: ).
