China's BYD opens first EV factory in Southeast Asia

Electric Vehicle automakers are witnessing turbulent times as price wars cripple profits. To offset losses, companies are looking to expand to regional markets of Southeast Asia. BYD becomes the latest EV company to open an EV factory in Thailand, marking its first expansion in Southeast Asia. Earlier, South Korea's Hyundai Motor Group and LG Energy Solution inaugurated Indonesia's first battery cell plant for EVs with an annual capacity of 10 Gigawatt hours (GWh) of battery cells.

BYD's EV facility was announced two years ago and is set to have an annual production capacity of 150,000 vehicles. The factory will also be used to assemble batteries and is set to employ around 10,000 workers. CEO and President Wang Chuanfu praised Thailand's auto policies in his comments cited by Reuters. He said, 'Thailand has a clear EV vision and is entering a new era of auto manufacturing. We will bring technology from China to Thailand'.

Chinese EV makers are doubling down on their investments in Thailand. Over $1.44 billion has flown from China to Thailand as automakers take advantage of government subsidies and tax incentives. BYD stocks witnessed a 3.2 per cent surge after the announcement, their biggest intraday jump since June 13.

Thailand is pushing for major EV investments by 2030. The country aims to convert 30 per cent of its annual production into EVs. Japanese car makers like Toyota and Honda have traditionally dominated Thailand's EV landscape. Interestingly, Thailand accounts for the largest overseas market for BYD, commanding a 46 per cent share of the total EV ecosystem in the first quarter. This comes as BYD faces scrutiny over consumer complaints regarding aggressive discounting.

Meanwhile, Hyundai & LG inaugurated Indonesia's first battery cell production plant. Hyundai & LG have committed up to $9.8 billion to Southeast Asia's largest economy. The plan is to set up an EV supply chain in the country and benefit from its rich nickel and copper resources.