China Automakers Are Overtaking Japanese Competitors In Thailand

Japan's dominance in Thailand's auto market is declining as Chinese brands gain significant ground, with Japanese automakers' market share falling to 65% in April, down from around 90% previously. Chinese-owned brands have doubled their share to a record 24%, led by BYD at 14%, according to Nikkei. Thailand's auto market grew just 1% year-on-year to 47,193 vehicles in April, with sales being held back by high household debt and tough auto loan approvals. Toyota's April sales fell 8% but it still led with 38% share, while other Japanese brands such as Isuzu, Honda, and Mitsubishi also saw significant declines. Chinese automakers, on the other hand, saw huge growth, with BYD's sales jumping 7.3 times and MG's share hitting 5% with a 46% sales increase. The growth of Chinese automakers in Thailand is driven by aggressive discounting, new plug-in hybrids and EVs, and the establishment of independent supply chains. More than 20 Chinese auto brands have entered Thailand, with many investing in local production, including battery makers such as Sunwoda Electronic and CATL. Chinese companies have established over 7,000 firms across Southeast Asia, with direct investment topping a record $25 billion in 2023. The shift towards Chinese automakers is expected to continue, with many predicting that Thai suppliers will not be able to fully benefit from the Chinese push into the country due to the lower costs of Chinese parts. The growth of Chinese automakers in Thailand is likely to have significant implications for the country's auto industry, with Japanese automakers facing increased competition and potentially declining market share.