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Thailand’s electric vehicle (EV) market is rapidly evolving into a global hub for both production and battery manufacturing, thanks to government incentives and strategic investments from global automakers. Companies like BYD and BMW have recognized Thailand’s potential, setting up manufacturing bases to capitalize on the growing demand for EVs in Southeast Asia.
Key Highlights:
- BYD and BMW are among the major automakers establishing EV and battery manufacturing facilities in Thailand.
- Thailand’s government incentives, including tax breaks and subsidies, are attracting significant foreign investment in EV production.
- 18 clean energy automakers have invested $2.2 billion in Thailand, with projections indicating a potential tenfold increase by 2027.
- The Electric Vehicle Association of Thailand forecasts a doubling of EV sales in 2024, potentially reaching a 20% market share.
- Thailand’s “30@30” strategy aims for 30% of vehicles manufactured by 2030 to be electric, including cars, trucks, and buses.
BYD, a Chinese automotive giant, recently inaugurated its $900 million state-of-the-art factory in Rayong, located in Thailand’s high-tech Eastern Economic Corridor. This facility is expected to produce 150,000 vehicles annually and marks BYD’s first production base outside of China. The company’s rapid expansion plans include exporting vehicles to ASEAN countries, Australia, and Europe.
BMW, a leading luxury car brand, is also intensifying its presence in Thailand. The company broke ground on a €42 million high-voltage battery plant in Rayong, with plans to launch locally manufactured EVs by the second half of 2025.
Thailand’s established position in the global automotive industry, particularly in internal combustion engine (ICE) vehicle production, has laid a strong foundation for its transition to EV manufacturing. Government policies have played a crucial role, offering consistent support through subsidies and tax incentives, which have accelerated local EV production and attracted significant foreign investment.
The surge in EV investment and production is not limited to automakers. Companies like SVOLT Energy Technology, in partnership with Banpu Next, are producing EV battery packs in Thailand, further developing a localized supply chain. This infrastructure supports Thailand’s ambition to become a major EV manufacturing hub for both domestic and export markets.
Thailand‘s strategic location, combined with its government’s unwavering commitment to supporting the EV industry, positions the country as a key player in the global transition to clean energy vehicles. With the opening of new local production facilities, Thailand is expected to double its EV sales in 2024, accounting for a 20% market share of all vehicles produced in the country.
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