China's BYD opens EV factory in Thailand, first in Southeast Asia
Updates with context on EU tariffs in paragraphs 8-12, and share prices in paragraph 4
By Chayut Setboonsarng
RAYONG, Thailand, July 4 (Reuters) -China's BYD 1211.HK 002594.SZ opened an electric vehicle plant in Thailand on Thursday, the automaker's first factory in Southeast Asia, a fast-growing regional EV market where it has become the dominant player.
"Thailand has a clear EV vision and is entering a new era of auto manufacturing," BYD CEO and President Wang Chuanfu said at the opening ceremony. "We will bring technology from China to Thailand."
The BYD plant is part of a wave of investment worth more than $1.44 billion from Chinese EV makers who are setting up factories in Thailand, helped by government subsidies and tax incentives.
Hong Kong-listed shares of BYD 1211.HK, the world's largest EV maker, climbed 1.6% to HK$235, after hitting their highest levels in a week.
Thailand is a regional auto assembly and export hub, and has long been dominated by Japanese car makers such as Toyota Motor 7203.T, Honda Motor Co 7267.T and Isuzu Motors 7202.T.
By 2030, the country aims to convert 30% of its annual production of 2.5 million vehicles into EVs, according to a government plan.
"BYD is using Thailand as a production hub for export to ASEAN and many other countries," said Narit Therdsteerasukdi, secretary-general of Thailand's Board of Investment, referring to the 10-nation Southeast Asian bloc.
As part of its expansion outside China, BYD is building its first European production base in Hungary.
Set to launch operations in three years, the BYD facility will produce EVs and plug-in hybrids for the European market, where the European Commission is imposing tariffs of up to nearly 38% on Chinese-made EVs.
BYD's China-made EVs will incur tariffs of about 17%.
The sprawling Thai facility, announced two years ago and worth $490 million, will have a production capacity of 150,000 vehicles per year, including plug-in hybrids.
The right-hand-drive EVs manufactured at the plant will potentially allow BYD to circumvent EU tariffs, which are applicable to China-made vehicles.
"We will also assemble batteries and other important parts here," said Liu Xueliang, BYD's Asia Pacific general manager.
Thailand is the largest overseas market for BYD, which commanded a 46% share of country's EV segment in the first quarter and is the third-largest player in passenger cars, according to research firm Counterpoint.
Other EV rivals in the local market include Great Wall Motor 601633.SS, which also has a production facility in Thailand, and U.S. automaker Tesla TSLA.O.
Reporting by Chayut Setboonsarng, Writing by Devjyot Ghoshal, Editing by Sherry Jacob-Phillips
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
