Thailand faces economic disruption from Chinese EV expansion

Thailand's automotive industry is undergoing a rapid transformation as Chinese electric vehicle (EV) manufacturers displace long-standing Japanese dominance. In the Rayong province, a major automotive hub, Chinese companies such as BYD and Great Wall Motors have established significant manufacturing footprints. BYD has opened its first overseas factory in the region, while Great Wall Motors has acquired a former General Motors facility.

Chinese brands now command 85% of Thailand's EV market share, a sharp increase from nearly zero four years ago. This shift has pressured Japanese manufacturers, including Subaru and Suzuki, which are closing plants, and Nissan and Honda, which are reducing production.

Supavud Saicheua, Chairman of the National Economic and Social Development Council, noted that the negative impacts are occurring faster than anticipated. The decline of traditional suppliers dependent on Japanese automakers threatens the supply chain and the livelihoods of approximately 700,000 workers.