By Chayut Setboonsarn
RAYONG, Thailand (Reuters) – China’s BYD opened an electric car factory in Thailand on Thursday, its first in Southeast Asia, a fast-growing electric vehicle (EV) market where it has a leading position.
“Thailand has a clear vision for EVs and is ushering in a new era of auto manufacturing,” BYD CEO and president Wang Chuanfu said at the opening ceremony. “We are bringing Chinese technology to Thailand.”
The BYD factory is part of a wave of investment of more than $1.44 billion by Chinese electric vehicle makers building factories in Thailand, backed by government subsidies and tax incentives.
Shares in the Hong Kong-listed automaker rose 3.2 percent to HK$237.60, the biggest intraday gain since June 13.
According to a government plan, Thailand aims to convert 30% of its annual production of 2.5 million vehicles to EVs by 2030.
Thailand is a regional auto assembly and export hub where Japanese automakers such as Toyota Motor Corp, Honda Motor Co and Isuzu Motors Ltd have long dominated.
“BYD is using Thailand as a production base for export to ASEAN and many other countries,” said Narit Tersuterasukudi, secretary-general of the Board of Investment of Thailand, referring to the 10-nation Southeast Asia bloc.
The facility, announced two years ago, is valued at $490 million and will have a production capacity of 150,000 vehicles per year, including plug-in hybrids.
The sprawling factory in Thailand’s eastern Rayong province is expected to employ about 10,000 workers, some of whom could be seen operating machines on Thursday as work-in-progress cars for BYD’s Dolphin model moved through the assembly line.
“Batteries and other key components will also be assembled here,” said Liu Xueliang, BYD’s general manager for Asia Pacific.
Thailand is BYD’s largest overseas market, with the company accounting for a 46% share of the country’s EV segment in the first quarter, according to research firm Counterpoint, making it the third-largest player in passenger vehicles.
Other EV rivals in the domestic market include Great Wall Motor and Tesla, which have production facilities in Thailand.
However, BYD dealers in Thailand are currently under investigation after consumers complained that discounts were too strong, leaving some buyers unhappy with the price they paid for their cars.
(Reporting by Chayut Setboonsar; Editing by Devjot Ghoshal and Shelley Jacob Phillips)
