Chinese Cars in Thailand: Chinese Electric Cars Account For 80% Of Thailand’s Electric Car Market, With BYD Atto 3 Becoming The Best-selling Model

"The 45th Bangkok International Auto Show will open at the end of March. I am still looking forward to seeing more Chinese brand electric vehicles this year." Wang Yanming, who has lived in Thailand for eight years, told Times Finance on the 13th.

The official website of the Bangkok Motor Show stated: "A group of new electric vehicle brand customers have reserved booths at the 2024 Auto Show, including AION, CHANGAN, NETA, etc. Consumers will have the opportunity to experience various models of electric vehicles." He also said: "We believe that the arrival of Chinese electric vehicle manufacturers will make Thailand's automobile market more colorful."

Times Finance reviewed the booth map of the Bangkok Auto Show and found that Chinese car companies such as BYD, Changan Automobile, Aian, and Nezha Automobile will all appear at the auto show. This is not the first time that Chinese car companies have collectively flexed their muscles in the Thai market.

Wang Yanming introduced to Times Finance, "Bangkok has three auto shows every year, the first is in March, the second is in August, and the third is in December." As early as December 2022, Wang Yanming went to visit the auto show. I visited the booths of BYD, Great Wall Motors, and Nezha Motors one by one.

The Thai market also occupies an important position in China's new energy vehicle exports. According to the China Association of Automobile Manufacturers, my country's automobile exports will be 5.221 million units in 2023, a year-on-year increase of 57.2%. Among them, 1.727 million new energy vehicles were exported, a year-on-year increase of 61.5%. The top three countries for exporting new energy vehicles are Belgium, Thailand and the United Kingdom. Among them, Thailand ranks second.

As Chinese electric car companies take turns to enter and continue to develop, the pattern of the Thai automobile market is also quietly changing. Nezha Auto told Times Finance: "At the Thailand Auto Show in December 2023, driven by Chinese brands, orders for participating electric vehicles surpassed fuel vehicles for the first time, and among the top ten sales brands at the auto show, six were Chinese electric vehicles, including Nezha Automobile. Zha Automobile, BYD and other brands."

According to the official website of Auto Life Thailand, sales of pure electric vehicles in the Thai market reached 76,300 units last year, a year-on-year increase of 684.4%. BYD Atto 3 (Yuan PLUS) has become the number one selling electric model, and Chinese brand electric vehicles account for 80% of the Thai electric vehicle market.

From January to February this year, the Thai pure electric market sales were still led by Chinese brands, with BYD Dolphin, Seal, Nezha V, BYD Atto 3, and MG4 Electric occupying the top five sales, with a share of 71.11%.

"There are more and more Chinese brand electric models running on the streets."

The appearance rate of Chinese new energy vehicles in Thailand is increasing.

"Departing from Bangkok Suvarnabhumi Airport, the particularly large billboards on the highway display Chinese new energy vehicle brands." In January this year, Li Feng (pseudonym) went to Thailand for a business trip, and the huge billboards left a deep impression on him. impression.

"Not only on the highway, but also on BTS in Bangkok, you can see advertisements for Chinese new energy vehicles." Wang Yanming told Times Finance, "There are more and more Chinese brand electric models running on the streets. We have seen them in Thailand before. Most BYD cars are Atto 3, now there are more and more dolphins, and Nezha V is also common."

"I didn't expect that the first time I hailed an electric car taxi in Thailand, it turned out to be a domestic brand." Yang Zhen (pseudonym), who traveled to Thailand, shared: "Taking a taxi to Aian feels very intimate."

According to the official website of Auto Life Thailand, sales of pure electric vehicles in the Thai market reached 76,300 units last year, a year-on-year increase of 684.4%. BYD Atto 3 (Yuan PLUS) became the best-selling electric model, with sales of 19,000 units last year, accounting for 25% of the market share. Eight Chinese brand electric models, including Nezha V, BYD Dolphin, and Euler Good Cat, ranked among the top ten sales. , Chinese electric vehicles account for 80% of Thailand's electric vehicle market.

From the perspective of brands, in 2023, BYD, Nezha Automobile, MG, Tesla, and Euler will become the top five electric vehicle brands in Thailand. BYD ranked first with sales of 30,650 vehicles, and Tesla, the only American brand among the top five, sold 8,206 vehicles.

From January to February this year, the Thai pure electric market sales were still led by Chinese brands, with BYD Dolphin, Seal, Nezha V, BYD Atto 3, and MG4 Electric occupying the top five, with a share of 71.11%.

Thailand, adjacent to China, is not only a high-potential consumer market in ASEAN and one of the largest automobile producers in Southeast Asia, but also one of the most valuable automobile export markets in the world, with a strong industrial base and a world-class manufacturing and supply base.

The Thai government's policies on electric vehicles in recent years have also become an important boost for Chinese electric vehicle companies to increase their investment in the Thai market. BYD, Nezha Automobile, etc. all use this as an advantage to enter the Thai market.

BYD told Times Finance that in September 2022, the Thai government began to implement an electric vehicle fiscal subsidy plan and also adopted tax reduction and exemption measures for electric vehicles, such as consumption tax, road tax, import tax, and carbon tax, to accelerate the popularization and promotion of electric vehicles. . At the same time, Thailand has formulated the "30·30" policy, that is, by 2030, Thailand's domestic EV electric vehicle replacement rate must be more than 30%, and new energy vehicle production capacity must also reach more than 30%.

"Thailand may become an important new energy vehicle market center in Southeast Asia." BYD said.

More than that, "Industry report data shows that about 44% of Thai consumers said they would consider purchasing and using electric vehicles when making their next car purchase decision. In addition, due to geographical, cultural and other factors, Thai consumers' acceptance of Chinese brands To a relatively high degree." Nezha Automobile told Times Finance.

The accelerated deployment of Chinese new energy vehicle companies and Thailand's local policy advantages have made the Thai market a strong overseas market for my country's new energy vehicle exports. According to the China Association of Automobile Manufacturers, my country's new energy vehicle exports will be 1.727 million units in 2023, a year-on-year increase of 61.5%. Among the top three countries for exporting new energy vehicles, Thailand ranks second.

Products alone are not enough

In Thailand, Japanese car companies that have entered the Thai market since the 1960s are opponents that Chinese car manufacturers cannot bypass. The current Thai market has become a battlefield for Chinese and Japanese automobile brands.

According to data from The Federation of Thai Industries, a total of 775,800 vehicles were sold in Thailand in 2023, a year-on-year decrease of 8.67%. Although Japanese models still account for the majority of the market share, judging from the changing trends, their sales compared with those of Chinese electric vehicles are ebbing and flowing.

Jiemian News reports that in the entire Thai market, the market share of Japanese brands will shrink by 8 percentage points to 78% in 2023, while the market share of Chinese brands will increase by 1.2 times year-on-year to 11%.

"Although Japanese cars entered Thailand earlier, they only dominated the fuel vehicle market and performed poorly in the new energy vehicle market. They could only sell single-digit new energy vehicles a month. In contrast, Chinese brands are developing in Thailand. The energy vehicle market is rising rapidly." Nezha Automobile told Times Finance.

It also shared a change in data. At the Thailand Auto Show in December 2023, driven by Chinese brands, orders for participating electric vehicles surpassed fuel vehicles for the first time. Among the top ten sales brands at the auto show, six Chinese electric vehicles were included. Nezha Automobile, BYD and other brands.

At the consumer level, what can be perceived is the increase in Chinese electric vehicle brands, rising sales and price changes. "In the Thai market, Chinese electric vehicles are more cost-effective than Japanese fuel vehicles of the same level." Wang Yanming told Times Finance.

"And I have recently noticed price cuts for some Japanese fuel vehicles, which was rare before. Although it is not as fierce as the domestic price war, the price reduction is not high." Wang Yanming believes that on the one hand, the models have reached the end of iteration, and on the other hand, the models have reached the end of iteration. On the one hand, it is "caught up" by Chinese electric vehicles.

According to a report by ThaiChina.com in November last year, Honda rarely conducted significant price cuts or promotions in the past. Honda Thailand CEO Hideo Kawasaka said promotions have become necessary amid fierce competition for electric vehicle sales in China.

"In Thailand, the most common ones are of course 4S stores for Japanese cars, which also have more sales and after-sales outlets.

However, stores of Chinese brands are also popping up like mushrooms after a rain."

As a Chinese new energy vehicle owner, Wang Yanming feels the difference in service levels between the two. "There is a very interesting detail. When you go to repair a Japanese car, the staff will bring you a glass of water and let you wait alone. Their service is more 'Buddhist', but the repair process is very fast. As for Chinese brand stores, They are often more beautifully decorated, and also have various rest areas and children's rest areas, and have extended many services."

"For Chinese car companies, it is still important to learn more about the local culture." Wang Yanming said.

As the blueprint for each car company's overseas expansion in Thailand becomes increasingly clear, product launch, channel construction and localization development are progressing.

"The Thai market is dominated by right-hand drive vehicles, with popular A0-class cars and small SUVs. Local consumers value top speed and acceleration performance, and prefer rear wipers, large wheels, etc. in terms of configuration. As for vehicle intelligence (intelligent driving assistance and Intelligent cockpit) requirements are in the early stages." Nezha Automobile said.

"However, to increase local share, products alone are not enough." Nezha Automobile said frankly. Therefore, Nezha Automobile has also cooperated deeply with local dealers to establish a complete sales network. It has also signed cooperation agreements with Thailand's PTT Company and BGAC Company to lay out the layout of charging infrastructure and the construction of modern electric vehicle assembly bases. Up to now, Nezha Automobile's dealers and stores in Thailand have covered Bangkok, surrounding provinces and major urban areas in Thailand. Thailand's ecological smart factory has also been put into operation.

BYD will continue to recruit and train talents in related fields in Thailand to face the challenges of cross-cultural coordination and management; adapt to the habits and preferences of local consumers and achieve localized operations. It is reported that BYD's first overseas passenger car production base in Thailand will be put into production this year. In terms of channels, BYD currently has more than 100 stores in Thailand.

Last year, Aian and Changan Automobile also officially entered the Thai market. In August 2023, Changan Automobile officially established three physical companies in Thailand. The Rayong factory laid the foundation on November 8, the brand was launched on November 27, and the Deep Blue Gemini was launched at the Thailand International Automobile Expo on November 29. On January 10, 2024 Deliver products to Thai users.

Aion officially announced its entry into the Thai market in June last year. Sales of the right-hand-drive version of the Aion Y Plus have begun. Aion's first overseas production base has also been located in Thailand. Construction officially started in Rayong Industrial Park, Rayong Province, Thailand in January this year.

Japanese car companies have also begun to respond quickly. In January, the overseas edition of the People's Daily quoted Kyodo News as reporting that four Japanese car manufacturers including Toyota, Honda, Isuzu and Mitsubishi are expected to invest 150 billion baht (approximately 43 billion yuan) in Thailand in the next five years. billion), mainly for electric vehicle production.

At the same time, according to Auto Life data, Thailand's electric vehicle sales fell 72.7% year-on-year in February this year. Facing the Thai market full of changes and competition, Chinese car companies still face certain challenges in going global.

Editor's note:

Chinese cars are accelerating their journey overseas. According to data from the China Automobile Association, China's automobile exports will be 4.91 million units in 2023, which means that China's automobile exports will surpass Japan for the first time and become the world's largest automobile exporter. More and more Chinese automobile brands are making great strides overseas. Behind the sails overseas, what are the opportunities and challenges for Chinese car companies? Times Finance & Times Weekly's "Chinese Cars Overseas" special series will take you into their stories.