Local motoring pundits are noticing the rapidly increasing numbers of Chinese automotive brands making their way into the country. These brands are bringing in great-looking vehicles with premium-level features at prices even the working classes can afford. The same is true with the new-energy vehicles they’re shipping in, such as EVs, plug-in hybrid EVs, and hybrids.
For me, what’s more telling is what these Chinese businesses are NOT bringing in, and these are the manufacturing facilities themselves. Guess what country is enjoying such opportunities. I’ll give you a hint: It’s the so-called “land of smiles.” Yes, none other than our Asean neighbor Thailand.
Six leading Chinese EV companies, all ranked in the top 10 for revenues in China in 2022, have either entered or have signified their intent to enter the Thai manufacturing market.
For example, the Ora Good Cat EV’s manufacturer, Great Wall Motor Co Ltd (GWM), has announced a substantial investment of 22.6 billion baht for EV production, components, and infrastructure development in Thailand. The National News Bureau of Thailand (NNT) broke this story a few weeks ago, adding that the production line for the new Ora Good Cat was inaugurated Jan. 12 at the GWM plant in the Eastern Seaboard Industrial Estate in Rayong. The opening, attended by no less than Minister of Industry Pimpattra Wichaikul, places Thailand as one of the pioneering nations to produce Ora EVs for global distribution, moving the country closer to becoming a central EV hub in the Asean region.
According to Nikkei Asia, Other Chinese automakers like the SAIC Motor group and global top EV seller BYD are also planning to produce EVs in eastern Thailand starting this year.
It helps that EVs have become generally accepted by Thai motorists. EV sales in December totaled 9,258 units, the highest ever for a single month, Autolife Thailand reports. Sales for all of 2023 rose nearly eightfold from 2022. Most EVs sold in Thailand have been imported from China.
News about Thailand becoming China’s EV production hub was reported by Bloomberg as early as June 2023, citing the Thai-Chinese Chamber of Commerce saying that more major Chinese EV makers were eyeing Thailand as a manufacturing and distribution base over other neighboring economies. Prospects have been backed by recent investment incentives in the kingdom for Chinese automakers, and investments are pouring in, the chamber’s Chair Narongsak Putthapornmongkol was quoted as saying.
“The EV is the most trailblazing industry right now, as seen through investments from MG, Great Wall Motor and BYD,” Narongsak said to Bloomberg in June 2023.
NNT also reported that starting this month, GWM plans to incorporate battery packs produced by its subsidiary SVOLT. SVOLT had established a battery production facility in Thailand in July 2023, marking another step in Thailand’s bid to become a regional leader in EV production. By 2030, EVs are expected to make up 30% of Thailand’s total vehicle production, equating to around 725,000 units annually.
PH talks with Vietnam’s VinFast
The Philippines is also taking a proactive effort in developing its EV industry. The country is in active talks with Vietnam’s VinFast for EV production. Vietnam’s Association of Foreign Invested Enterprises (VAFIE) official magazine The Investor wrote this Jan 30 that “the Philippines ‘eagerly anticipates collaborating with Vingroup on EV production and local mineral processing,’ Philippine President Ferdinand Marcos Jr. posted on his Facebook page on Monday.”
Marcos made the statement at a meeting in Hanoi with Pham Nhat Vuong, chair and founder of Vingroup and CEO of Vingroup automobile arm VinFast, as part of his Jan. 29 and 30 Vietnam visit.
Philippine News Agency (PNA) reported Jan. 30 that Vinfast would be registering its subsidiary in the Philippines (Vinfast Philippines) to implement its entry into local EV marketing, energy storage and nickel processing partnerships. The state-run Radio Television Malacañang also announced the same on its official Facebook page.
Vinfast is a subsidiary of Vingroup—a multi-sector corporation that focuses on technology and industry, trade and services and social enterprise. Serving as one of Vietnam’s leading private enterprises, Vingroup has created a reputable, well-recognized Vietnamese brand.
PNA also reported that Department of Trade and Industry (DTI) Secretary Alfredo Pascual urged VinFast to explore opportunities beyond opening dealership networks in the Philippines, saying that VinFast has more opportunities in the Philippine market beyond selling its EVs through dealership business, which is set to open in April 2024. Pascual said the country has become an attractive EV market with the issuance of Executive Order (EO) 12 which eliminates duties on completely built-up units of certain EVs.