Chinese electric vehicle expansion impacts Thailand and Brazil

The rapid expansion of Chinese electric vehicle (EV) manufacturers, such as BYD and Great Wall Motor, is causing significant economic shifts in Southeast Asia and South America.

In Thailand, the automotive hub of Rayong is facing a crisis as the transition to battery-powered vehicles disrupts the long-standing dominance of Japanese automakers. This shift has led to the bankruptcy of traditional parts suppliers and threatens an ecosystem that employs approximately 700,000 workers. Experts warn that up to 300,000 jobs could disappear over the next five years if the technological core of the EV ecosystem remains concentrated abroad. Additionally, labor leaders have raised concerns regarding temporary contracts and restrictions on union activity by Chinese firms.

In Brazil, BYD has established a major manufacturing presence in Camaçari, Bahia, marking its largest plant in Latin America. While the facility has already assembled over 100,000 vehicles using imported kits, full local production is expected by late 2026. The expansion has brought a notable influx of Chinese workers to the region, with thousands of residence visas issued to support factory operations and ongoing construction projects.