In the spotlight of the Bangkok International Motor Show, Chinese automakers garnered more orders than Japanese automakers for the first time. Does this signify a potential rewrite of the rules of the game in the Southeast Asian market?

The 46th Bangkok International Motor Show successfully ran from March 24th to April 6th, featuring 49 participating brands, over 300 exhibited vehicles, and attracting more than 1.6 million visitors. This automotive event once again placed Chinese automotive brands at the forefront of attention.

According to an incomplete count by Auto Review reporters, among the 26 large exhibitors at this year's show, Chinese automotive brands accounted for 10 booths, occupying half of the entire exhibition space. BYD, GAC, MG, Great Wall, Geely, XPeng, and other independent brands brought their latest models, attracting waves of local consumers.

Particularly noteworthy, BYD surpassed Japanese giants such as Toyota and Honda in order volume for the first time, topping the order list at the show. Simultaneously, half of the top 10 car brands in terms of pre-orders were also from China. Focusing on the Thai electric vehicle market, Chinese brands occupied nearly 90% of the market share in 2024 – marking the first time that Japanese automakers, who have dominated the Thai automotive market for decades, felt the "pressure" from Chinese electric vehicles.

"China Phenomenon" at the Bangkok International Motor Show

In the view of Auto Review reporters, the "China Phenomenon" at the Bangkok International Motor Show is no coincidence. This is primarily due to the support of the Thai government for the new energy vehicle industry.

Recently, the Thai government has introduced a series of policies, including tax exemptions, land incentives, and reductions in import tariffs for parts. For instance, electric vehicles imported and locally assembled receive cash subsidies ranging from 70,000 to 150,000 Thai baht per vehicle, with exemptions on import tariffs and consumption taxes. Key components such as electric vehicle batteries, electric drive systems, and charging piles are subject to zero tariffs, which to a certain extent mobilizes the enthusiasm of automakers to invest and build factories.

Moreover, Thailand's infrastructure construction has given confidence to Chinese new energy automakers. According to the latest news, the Thai Ministry of Energy and the Electricity Generating Authority of Thailand (EGAT) are actively promoting the "National Charging Pile Network Construction Plan," encouraging private enterprises to build fast and slow charging facilities and providing charging pile operators with subsidies of up to 75% of investment costs. Public data shows that as of the first quarter of 2025, Thailand has built over 5,000 public charging piles, with supporting private charging piles reaching about 20,000, doubling from last year.

As the largest automobile manufacturing country in ASEAN, Thailand presents enormous business opportunities. According to data from the Federation of Thai Industries (FTI), in 2024, the Thai market sold 572,700 vehicles, produced 1,469,000 vehicles, and exported 1,019,200 complete vehicles, making it the second largest automobile sales market in Southeast Asia.

Therefore, Chinese automakers, which already have advantages in the new energy industry, align well with Thailand's industrial policies. From Great Wall's acquisition of GM's Thai factory in 2020 to BYD's decision to invest heavily in constructing Southeast Asia's first overseas passenger vehicle factory in 2023, to 2024, BYD, GAC, MG, and other Chinese automakers' factories in Thailand have successively been completed and put into operation.

Public data shows that Chinese automakers that have invested and built factories in Thailand now have a total automotive production capacity of over 600,000 vehicles. With the construction of the Eastern Economic Corridor in full swing, the strategic layout of more and more Chinese automotive brands in Thailand has shifted from "testing the waters" to "deep cultivation."

"Nowadays, out of every three pure electric vehicles sold in Thailand, one is a BYD." At the completion ceremony of BYD's Thai factory on July 4, 2024, Wang Chuanfu, chairman and president of BYD Co., Ltd., confidently described the development and changes of BYD in Thailand in recent years.

Zhang Wenhui, CEO of Great Wall Motors Thailand, said in an interview with the media: "We have not only established a production base in Thailand but also set up a research and development center and a marketing network, forming a complete business system integrating research, production, and sales. Our goal is not simply to sell cars but to integrate into the local automotive ecosystem and become a part of the Thai automotive industry."

After the Thai factory was put into operation, Great Wall Motors performed exceptionally well in the Thai market. According to data from the Federation of Thai Automobile Importers and Distributors, in 2024, Great Wall Motors sold 42,156 vehicles in Thailand, a year-on-year increase of 156%, with its market share rising from 2.1% to 3.8%, surpassing traditional international brands such as Ford and Nissan to become the fastest-growing automotive brand in the Thai market.

The success of the above two companies in Thailand demonstrates a new model for Chinese automotive brands going global: it is no longer simply product export but deep localization of the entire industrial chain. According to foreign media reports, with the support of relevant policies, rapidly developing Chinese automakers have become the main force driving employment in the Thai automotive industry. These factories collectively provide thousands of jobs locally, and if they reach full production capacity in the future, the number of jobs could reach tens of thousands.

Electric Dilemma for Chinese Automakers

However, the rapid development of Chinese automotive brands in the Thai market has not been smooth sailing. According to Thai media reports, in 2024, electric vehicles produced by Chinese automakers accounted for only 12.2% of the Thai automotive market. In 2024, the number of electric vehicle registrations in Thailand was only around 70,000, and even with the most optimistic predictions, it may reach about 100,000 in 2025, while the production capacity of 600,000 vehicles exceeds the actual demand of the Thai market.

Simultaneously, due to the long-term dominance of Japanese cars in the Thai market, the core supply chains of many Japanese-funded enterprises and OEMs have cross-shareholdings. Under the coercion of interests, this also makes it more difficult for Chinese automakers to procure parts. Sompol Thanadumrongsak, president of the Thai Automotive Parts Manufacturers Association (TAPMA), expressed concern about this phenomenon in an interview. He frankly stated that currently, only a few Thai local factories can provide supporting parts for Chinese electric vehicles, and most key components still need to be imported from abroad.

Although local policies provide certain support for foreign investment in factories, it takes a lot of time and energy to communicate with Chinese parts suppliers about establishing factories locally or with local parts manufacturers about parts development. Coupled with tasks such as testing parts error rates, recruiting and training local workers, it is not easy to complete localized production in a short period of time.

Therefore, ensuring profit has become the top priority for automakers coming to Thailand. Taking XPeng as an example, by importing its flagship model, the XPeng X9, into the Thai market, although this makes the starting price of the model in Thailand as high as 2,790,000 Thai baht (about RMB 611,000), nearly 60% higher than the domestic version, this measure is also a reluctant choice based on the current market environment. When economies of scale have not yet been formed, high prices have become an important means for automakers to balance costs and profits.

In addition, issues such as road and traffic conditions, software ecosystems, and communication facilities in Thailand also greatly restrict the development of Chinese electric vehicles. For example, the intelligent technology that Chinese smart electric vehicles are most proud of may inevitably encounter challenges in Thailand, which lacks sufficient infrastructure support. Consumers find it difficult to experience the convenience brought by "high-level intelligent driving" and naturally will not pay for it.

What is even more worrying is that under the double pressure of overcapacity and weak purchasing power, a price war has also quietly broken out at this Bangkok International Motor Show. Taking BYD Dolphin as an example, the price of this model has been reduced from 799,900 Thai baht (about RMB 170,000) when it first debuted at the Bangkok International Motor Show in 2023 to 599,900 Thai baht (about RMB 122,000), a reduction of nearly 30%. Changan Automobile has launched the Deep Blue SL03 with a price of only 499,000 Thai baht (about RMB 97,000), setting a new low price for electric vehicles of the same level.

However, a price war is a double-edged sword because it will make consumers expect further price reductions in the future. This creates a vicious cycle: the more produced, the harder it is to sell, and ultimately, market share can only be competed for through price wars, ultimately harming all participants.

Dawn of Victory

The good news is that facing the current predicament, the Thai government has not chosen to retreat but has actively increased its support for the electric vehicle industry. Narong Thedsathirarak, Secretary-General of the Board of Investment of Thailand (BOI), revealed that the Thai government is currently working to promote Chinese electric vehicle brands to increase the procurement of local parts and components, while encouraging investors from China and Taiwan to establish production bases for core components such as printed circuit boards (PCB) in Thailand. This initiative aims to create more job opportunities in Thailand and further optimize the integrity of the electric vehicle industry chain.

On March 13, 2025, the National Policy Committee led by Pichai Chunhachira, Deputy Prime Minister and Minister of Finance of Thailand, approved investment promotion for Sunwoda Automotive Energy Technology (Thailand) Co., Ltd. This top ten global electric vehicle battery manufacturer from China will invest over 50 billion Thai baht to build two production factories in Chon Buri Province, making it the largest overseas battery production base outside of China. The project is expected to be operational within the year, creating more than 4,000 jobs, including over 900 engineers and researchers.

Sunwoda also plans to expand its battery recycling business to improve the Thai electric vehicle supply chain and support scrap battery management. Established in April 2024, the company is a subsidiary of Shenzhen-based Sunwoda Electronic Co., Ltd., specializing in battery manufacturing for computers, communication equipment, electric vehicles, and energy storage systems. Its subsidiary, SEVB, leads the market for hybrid electric vehicle (HEV) batteries and ranks third in the field of high-end electric vehicle batteries in China.

"The Thai market places greater emphasis on after-sales service, and the current after-sales service network construction of Chinese brands entering Thailand is still insufficient." Suroj Sangsnit, chairman of the Thai Electric Vehicle Association, also made suggestions for Chinese electric vehicle brands in an interview. If Chinese electric vehicle brands can raise their after-sales service to the same level as Japanese automakers, it will not be difficult to increase their market share.

From a broader perspective, Chinese automotive brands are collectively facing historic opportunities to go global. According to statistics from the China Association of Automobile Manufacturers, in 2024, China's automobile exports exceeded 4.5 million, a year-on-year increase of 33%, with export sales reaching RMB 860 billion. China's share of the global market has increased from 3.1% in 2015 to 9.3% in 2024, a record high. Currently, some Chinese automakers have chosen to sell models produced in Thailand to Southeast Asian markets such as Malaysia and Indonesia. This is primarily due to the deepening implementation of the ASEAN Free Trade Agreement (AFTA). It is understood that with the support of the ASEAN Free Trade Agreement, models produced in Thailand can be exported to other ASEAN countries with "zero tariffs." Many Chinese brands also consider export opportunities from here when planning production capacity in Thailand.

In addition to the support of trade policies, the strategic significance of the Thai market cannot be underestimated. Auto Review reporters learned that Thailand is located in the center of Southeast Asia, with convenient transportation and a developed logistics network, which facilitates the transportation and distribution of automotive products to neighboring countries. At the same time, production costs in Thailand are relatively low, making it an important springboard for Chinese automakers to expand overseas markets.

However, as mentioned earlier, although the Thai market has huge potential, it also faces challenges such as fierce market competition, complex policies and regulations, and cultural differences. To gain a foothold in the Thai market, Chinese automakers need not only courage but also patience.

Currently, the construction of Jingwang Electronics' production base in Thailand has progressed with the completion of land acquisition and capital injection into its subsidiaries. Additionally, Junhe Co., Ltd. recently announced plans to invest 200 million yuan in establishing a factory in Thailand. Regarding charging infrastructure, the Petroleum Authority of Thailand (PTT), energy giant EGAT, and real estate groups are expediting the installation of charging stations in key cities such as Bangkok, Chiang Mai, and Phuket, as well as along major highways, thereby establishing an "urban + long-distance" charging network. Chinese providers of charging equipment and systems, including Tellion, Star Charge, and Enpower, are also actively engaging in local collaborations, partnering with Thai enterprises to develop intelligent charging solutions. With the influx of more participants, Chinese electric vehicle companies in the Thai market are poised to embark on a path to success.

Note: This article was originally published in the "Hot Topic Tracking" section of the May 2025 issue of Auto Review magazine. Please stay tuned for more updates.

Picture: from the internet

Article: Auto Review

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