While several automobile manufacturers have been exporting out of plants they set up in China, Chinese manufacturers are poised to follow suit with factories that they already have or are in the process of constructing in Thailand.
Shenzhen-based BYD, one of the largest global electric vehicle (EV) makers is the latest to start manufacturing cars in Thailand, the Southeast Asian country. It is in the process of constructing a plant in a province east of Bangkok named Rayong, which is dubbed the ‘Detroit of Asia’. The plant, which is poised to be completed by the 4th quarter of 2024, will have an initial capacity of 150,000 automobiles a year. Only about 10% of that will be for the Thai market, according to a Reuters report while the balance will be exported to other countries.
On Monday, a spokesman for BYD informed The Straits Times from its headquarters in Shenzhen that the plant will be catering to Singapore and other right-hand drive markets. She said that the product roll-off there will be benefiting the right-hand drive nations in principle, and added that the Atto 3, BYD’s best-selling model in Singapore will be among them.
The lower costs of shipping and labour to right-hand drive markets were cited by the spokesman as the reasons for constructing a production plant in Thailand. She further stated that the plant which was reported by Reuters to be close to US$500 million (S$670 mn) will be not merely an assembly plant, but a full manufacturing facility.
However, speaking to The Straits Times, Mr. Liu Xueliang, general manager of BYD Auto Sales (Asia Pacific) was noncommittal regarding plans for exporting Thai-manufactured cars to Singapore, which presently gets its automobiles from China. At the opening of BYD by 1826, a retail outset set within the 1826 restaurant in Boat Quay, Mr. Lieu stated that no firm decisions had been made as yet and that they would be looking at each individual market before deciding what is best suited to it. He further stated that the Thai plant would primarily supply automobiles to the Thai market where locally manufactured cars enjoy preferential taxes. Mr Liu was quoted by Nikkei Asia as commenting that the factory would also be supplying vehicles to Europe and Asian countries.
Thailand is an established destination for automobile manufacturers from other countries, particularly Japan. Toyota, the largest vehicle producer in the world, has been manufacturing automobiles since 1964 in Thailand, followed by Mazda in 1975 and Honda in 1984. Many key Japanese models sold in Singapore are manufactured in Thailand, starting with the Honda City in 1996 and the Toyota Soluna which has since been replaced by the Vios in 1997. Other Chinese Electric vehicle makers meanwhile include Changan Automobile, which is expected to begin rolling out cars from its plant in Rayong in 2024. Nikkei Asia reported that at least two more EV projects in Thailand – one by Aion, a sub brand of Guangzhou Automobile Corp, and the other by CATL, the biggest EV battery maker in the world – are expected to be approved this year.
Great Wall Motors in China has also been assembling automobiles in Thailand since it acquired a General Motors plant in 2020. SAIC, one of the biggest automotive companies in China, opened a plant in Thailand’s Chonburi Province in 2017, near Rayong. The Shanghai-based giant will commence manufacturing EV batteries in Thailand this year. While Chinese automobile makers are expanding their production sites outside their home country, others have been exporting automobiles from their plants in China. Since as early as 2019, brands such as Polestar, Volvo and BMB have been supplying Singapore with automobiles made in their respective plants in China, while Lotus will be following suit next year. Meanwhile, BYD will have another retail concept in Suntec City, Singapore in July. Similar to the one in Boat Quay, it will be operated by an EightX lifestyle specialist. According to Mr. Davin Ongsono, Chief Executive of 1826 Restaurant, plans are underway for several other locations around Singapore
