Thailand’s EV Industry, Part 2: China’s «Overwhelming» Strategy and Thailand’s Policy Implementation

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This is part two of a two-part report on the state of Thailand’s electric vehicle adoption.

I used YCP’s “Thailand’s EV Powerhouse: 2024 Guide to the EV Market in Thailand,” published in December 2024, as data and context reference. I have updated some of the data mentioned in that comprehensive report with additional information for the 1st half of the year.

Infrastructure Development & Distribution

Charging infrastructure expanded 12% during the first half of 2024, achieving over 10,000 outlets distributed across 3,000+ locations nationwide. Network composition includes 5,388 AC chargers and 5,458 DC fast chargers, with DC infrastructure demonstrating 20% growth due to market preference for rapid charging capabilities.

Geographic distribution analysis reveals significant urban concentration, creating infrastructure gaps in rural and suburban regions. This distribution pattern limits inter-provincial travel capabilities and contributes to range anxiety among potential BEV adopters. EV Station PluZ leads service provision with over 200 locations and 500 charging outlets added during the first six months of 2024.

The National EV Policy Committee has established infrastructure targets of 12,000 DC fast chargers by 2030 and 36,500 by 2035. Achievement of these targets requires substantial public-private sector coordination and investment, given current deployment rates and geographic distribution challenges.

The Metropolitan Electricity Authority (MEA) introduced “Charge Sure by MEA” certification services to ensure charging station safety, reliability, and accuracy standards. This quality assurance initiative aims to enhance consumer confidence and support broader EV adoption through infrastructure reliability improvements.

Chinese Brands “Overwhelming” Strategy

Chinese automotive manufacturers have implemented systematic market capture strategies in Thailand’s BEV sector, achieving collective 65% market share through integrated manufacturing and pricing approaches. BYD leads market penetration with 42% share, followed by MG at 13% and Neta at 10%. This concentration reflects coordinated localization strategies combining competitive pricing with domestic production capabilities.

BYD’s manufacturing infrastructure development represents significant foreign direct investment, establishing 150,000-unit annual production capacity in Rayong province. The facility represents BYD’s initial manufacturing operation outside mainland China, indicating strategic positioning for regional market service. Neta implemented localization through partnership with Bangchan General Assembly Co., Ltd., targeting entry-level market segments through cost-optimized production methodologies.

Additional Chinese manufacturers have announced production capacity expansion plans. Changan targets 100,000-unit annual capacity by 2025 with regional export capabilities. Chery projects 50,000-unit production in 2025, expanding to 80,000 units by 2028. AION has committed THB 2.3 billion ($72.6 million) investment for a 20,000-unit annual production capacity. These investments collectively represent systematic supply chain localization supporting Thailand’s manufacturing hub development strategy.

BYD’s Market Expansion & Manufacturing Integration

BYD deserves its own section, considering its significant size and presence. BYD’s Thai market penetration represents a comprehensive vertical integration strategy extending beyond vehicle assembly to supply chain development. The Rayong facility focuses on popular models, including the Atto 3 and Dolphin, targeting mass market segments through localized cost structures. BYD’s partnership with Rêver Automotive facilitates technology transfer and local workforce development.

Beyond passenger vehicle manufacturing, BYD has expanded into commercial vehicle segments, introducing five bus models and four truck variants during the first nine months of 2024. This diversification strategy positions BYD across multiple market segments while leveraging manufacturing economies of scale.

BYD’s Thai operations align with the company’s global expansion methodology, establishing regional manufacturing hubs to serve domestic and export markets. The Thailand facility serves as the Southeast Asian production base, potentially supplying neighboring markets including Malaysia, Indonesia, and Vietnam. This regional hub strategy reduces logistics costs while providing supply chain resilience.

The company’s integration approach includes local supplier development and workforce training programs. BYD’s manufacturing methodology emphasizes technology transfer to local partners, supporting Thailand’s objective of developing indigenous electric vehicle capabilities. This approach differentiates BYD from purely assembly-focused foreign investment models.

Traditional Automotive Sector Transitioning

Electric vehicle market expansion has created competitive pressures for traditional automotive manufacturers, particularly Japanese companies with established Thai operations. Subaru announced Thailand production line closure effective December 2024, while Suzuki will terminate manufacturing by end-2025. These decisions reflect intensified competition from Chinese EV manufacturers and fundamental market shifts toward electric mobility.

Honda has similarly indicated production consolidation, though maintaining selective hybrid vehicle manufacturing. These adjustments represent strategic responses to changing market dynamics rather than complete market exit. Japanese manufacturers face the challenge of adapting established supply chains and workforce capabilities to electric vehicle requirements.

The transition raises employment and technology transfer implications, as Japanese manufacturers have historically provided significant job creation and technical expertise development. Thailand must balance EV market advancement with traditional automotive sector support to maintain industrial stability and employment levels.

Government policy responses include workforce development programs targeting 150,000 workers over five years through the EV-Human Resources Development initiative. The program emphasizes digital technology skills, green energy expertise, and battery system capabilities to support industry transition requirements.

Regional Competitive Positioning

Thailand’s Southeast Asian electric vehicle leadership reflects multiple competitive advantages, including established automotive infrastructure, skilled manufacturing workforce, and coordinated government policy implementation. While Indonesia maintains regional automotive market leadership in aggregate sales, Thailand’s specialization in electric vehicle manufacturing and policy coordination creates differentiated positioning.

The country’s automotive supply chain maturity provides a foundation for electric vehicle component production and system integration. Strategic geographic positioning enables efficient domestic and export market service, while established logistics infrastructure supports manufacturing hub operations.

Thailand’s policy coordination approach, combining production incentives with infrastructure development and workforce training, demonstrates comprehensive electrification strategy implementation. This integrated approach differentiates Thailand from purely incentive-based or manufacturing-focused strategies implemented by regional competitors.

Future competitiveness depends on addressing infrastructure geographic distribution, workforce technical skill development, and traditional industry transition management. Success in these areas will determine Thailand’s ability to maintain regional electric vehicle leadership while achieving the ambitious 2030 electrification targets established through the “30@30” strategy.