China's BYD to Set up EV Plant in Thailand
China’s BYD, the world’s second-largest electric vehicle (EV) maker and third-largest battery maker, has selected Thailand as its first overseas plant construction site. It aims to preempt the Southeast Asian EV market, which is expected to grow rapidly. A fierce battle is expected between BYD and Hyundai Motor Group, which is accelerating its penetration of the Southeast Asian EV market.
BYD recently signed a contract for land purchase and factory construction with WHA, a Thai real estate company. BYD will start operating its 150,000-unit-a year plant in 2024. The investment is said to be around 1 trillion won. BYD is currently selling Chinese EVs in Thailand under a partnership with a local dealer.
BYD has a competitive edge in price as it produces EV batteries on its own. The Chinese automaker plans to internalize automotive semiconductors, the main cause of car production disruptions around the world. BYD will produce 500,000 8-inch automotive semiconductors annually beginning from October.
Southeast Asia is a major market that Hyundai Motor Group cannot forsake. Governments around the world are keen to promote EV sales. The Thai government plans to push up the proportion of EVs in new car sales to 30 percent by 2030.
Hyundai Motor Group completed the construction of a 150,000-unit-a-year car plant in Indonesia last year and is rolling out the IONIQ 5. The plant sold a total of 648 EVs in 2022. It will begin to run a joint battery plant with LG Energy Solution near the EV plant beginning from the first half of 2024.
According to market research firm Marklines, Hyundai Motor’s market share in Indonesia rose from 0.3 percent in August 2021 to 5.9 percent in August 2022, claiming sixth place. “Japanese automakers that have dominated the Southeast Asian market, but they are lagging behind in a transition to EVs. Hyundai Motor Group and Chinese companies are expected to heat up competition in the Southeast Asian market,” an industry official said.