China's automobile industry chain is accelerating its entry into Thailand

Thailand is the first choice for China’s automotive supply chain to export to Southeast Asia. Under the wave of global electrification, China's new energy vehicles have seized the opportunity of going overseas to rapidly expand into the Thai market and have achieved impressive results. According to data released by Toyota Motor Thailand, although Thailand’s total sales of passenger cars and commercial vehicles in 2023 will be 775,780 units, a year-on-year decrease of 9%. But Chinese automakers' overall market share grew by about 6 percentage points, with their share of the new car market doubling to 11%. In addition, according to analysis, in January 2024, BEV terminal retail sales in Thailand were 13,653 units, a year-on-year increase of 350%, of which total sales of self-owned brands were 12,855 units, with a market share of 94.2%, basically monopolizing the Thai new energy market.

As an important economy in ASEAN, Thailand has a vast market and low production costs. In addition, the Thai government has actively launched a number of preferential policies, attracting more and more Chinese automobile manufacturers to invest and build factories, such as SAIC MG, BYD, Great Wall Motors, etc. Especially the active layout in the field of smart electric vehicles has effectively met local consumer demand and promoted the upgrading and transformation of Thailand's automobile industry.

At the same time, some domestic parts companies such as CATL, Guoxuan High-Tech, etc. have also established production plants in Thailand, and through cooperation with local companies, they continue to improve their competitiveness in the Thai market and further improve the local automobile industry chain.