BYD Opens First EV Plant in Thailand Amid EU Tariffs

BYD, China's electric vehicle (EV) manufacturer, inaugurated its first Southeast Asian plant in Rayong, Thailand. This development comes as the European Union (EU) and the United States impose new tariffs on Chinese-made EVs, prompting manufacturers to explore alternative markets.

The newly opened BYD plant, an investment valued at approximately US$486 million, is designed to assemble around 150,000 vehicles annually. These vehicles are destined for both the local Thai market and export to other Southeast Asian nations and Europe. 

"Thailand has a clear EV vision and is entering a new era of auto manufacturing," said Wang Chuanfu, CEO and President, BYD, at the opening ceremony. "We will bring technology from China to Thailand."

This move is part of a broader wave of investments totaling more than US$1.44 billion by Chinese EV manufacturers in Thailand, supported by local government subsidies and tax incentives.

Historically dominated by Japanese carmakers such as Toyota, Honda, and Isuzu, Thailand is positioning itself as a cornerstone player in the EV market. According to a government plan, Thailand aims to convert 30% of its annual vehicle production of 2.5 million units to EVs by 2030.

"BYD is using Thailand as a production hub for export to ASEAN and many other countries," said Narit Therdsteerasukdi, secretary-general, Thailand's Board of Investment, referring to the 10-nation Southeast Asian bloc.

BYD, the world's largest EV maker, is not just expanding in Southeast Asia. The company is also setting up its first European production base in Hungary, slated to begin operations in three years. This facility will produce EVs and plug-in hybrids for the European market, potentially mitigating the impact of the new tariffs.