Thailand’s EV Pivot gathers Pace as BYD, Neta Break Ground For New Plants

Thailand, which has made the continuation of its status as a key auto hub key in the face of the EV transition, has just welcomed two Chinese giants, BYD and Neta Auto to the country, as the two firms broken ground on planned auto factories in Thailand for electric vehicles. The Thai government is pushing to replicate a complete ecosystem for electric vehicles, including batteries, to ensure the continued success of its domestic auto manufacturing sector. As the largest producer of vehicles in South East Asia and the 10th largest worldwide, Thailand’s auto sector accounts for significant export earnings and employment in the country.

BYD’s  electric vehicle assembly line is located in Thailand’s eastern Rayong province. The factory will cover 96 hectares and is scheduled to begin production next year with an annual capacity of 150,000 units. Being built in association with WHA corp, the deal is the biggest ivestment for WHA in 20 years.

Neta Auto expects production at its Bangkok plant to begin at the end of next January 2024 with a capacity of 20,000 vehicles per year, it added.

BYD debuted its sports utility vehicle Atto 3, in Thailand in November 2022, and has delivered over 10,000 of them so far. The new plant gets the benefit  of preferential shipping and customs clearance to boost BYD’s delivery efficiency in the country.

Neta Auto has also entered into an agreement with Thailand’s Bangchan General Assembly to jointly build an auto assembly factory that will be the Chinese firm’s main production and export base for right-hand-drive EVs to countries in the Association of Southeast Asian Nations.

Neta is working with a PTT subsidiary called Arun Plus. This joint-venture is focusing on creating an EV ecosystem.

Besides the Chinese firms, AaUSD 1 billion dollar deal was announced in May between Foxconn and Arun Plus. Their new venture, Horizon Plus, will manufacture and develop EVs in Thailand using their factory, which is scheduled for completion in 2024.

To support EVs locally, Thailand has approved a three (3) to five (5) year tax holiday for charging service providers. With over half of Thailand’s charging stations are located in the Bangkok metropolitan area currently, the tax holiday is expected to help initiate investments throughout the country.