On the 24th, Chinese media Tencent Auto published a column article titled 'Thailand's Electric Vehicle (EV) Penetration Rate Approaches 30%, How Will the Chinese 'Army' Break Down Japanese Manufacturers' 60-Year Stronghold?'

The article explained that in Thailand, Japanese manufacturers such as Toyota and Honda have led the automotive market for over 60 years, building an industrial base that includes not only sales but also finance, parts supply, and after-sales service. Meanwhile, Chinese manufacturers view the Thai market as an important base for global market expansion, and they are accelerating their entry, mainly led by BYD and SAIC MG.

Furthermore, it was pointed out that in 2021, when Thailand launched its EV popularization policy, the sales volume difference between Japanese and Chinese manufacturers was approximately 22 times. However, from January to May 2026, Japanese manufacturers sold 204,800 units, and Chinese manufacturers sold 87,700 units, reducing the difference to 2.3 times. Chinese manufacturers surpassed U.S. manufacturers to take second place in sales volume, and in the BEV market, they sold 82,100 units, capturing a market share of 28.5%.

It then explained the background, stating, 'While the Thai market is limited in size with annual sales of approximately 600,000 units, the planned production capacity of seven Chinese manufacturers exceeds 550,000 units per year. Therefore, each company positions Thailand as an export base for right-hand drive markets such as ASEAN and Europe, and is making significant investments.'

Meanwhile, it also mentioned that challenges are emerging with the spread of EVs. In May 2026, nine industry organizations, including the Electric Vehicle Association of Thailand, appealed to the government, stating that local companies' orders were decreasing due to the increase in companies importing finished vehicles from China, and proposed eight measures, including expanding the tax difference between finished vehicle imports and local production, and strict screening of local content rates. The Japanese Ambassador to Thailand also expressed the view that a complete transition to EVs is premature and that development including hybrid vehicles and biofuels is necessary.

The article stated, 'In Thailand, the automotive industry accounts for more than 10% of GDP. The government is promoting the transition from gasoline vehicles to EVs, but the reduction of subsidies, strengthening of local production obligations, and the fate of EV support measures scheduled to end at the end of 2027 are drawing attention.' It also argued, 'Chinese manufacturers' local content rate remains around 40-50%, a significant difference compared to Japanese manufacturers' more than 80%. Local production in Thailand is challenging in terms of cost, and the manufacturing cost of new energy vehicles is 15-30% higher than in China, which is a problem.'

It then introduced, 'Chinese manufacturers recognize that it is difficult to shake the foundation built by Japanese manufacturers over 60 years with a cost-performance strategy alone. BYD is utilizing Thailand as an export base for Europe, ASEAN, and Oceania, and SAIC MG is also promoting exports to neighboring countries.' It emphasized, 'Chinese manufacturers are also working to strengthen their service systems and are promoting cooperation with Thailand in areas such as automotive technical standards, regulations, and human resource development.' (Translation/Editing by Kitada)