In recent years, an increasing number of Chinese car brands have entered Thailand to set up factories, driving the rapid growth of the local electric vehicle (EV) market. However, as Chinese brands continue to expand investment, Thailand's automotive industry is now proposing new demands, hoping the government will further increase the "local content rate (Local Content)" of electric vehicles, requiring factories to adopt more locally produced parts in Thailand to ensure the local supply chain can continue to develop.

According to Thai media reports, the Federation of Thai Industries (FTI) and the Thailand Automotive Industry Association (TAIA) recently jointly urged the government to formulate more complete local parts policies in the future, encouraging or even requiring electric vehicle manufacturers to prioritize components produced by local suppliers when manufacturing in Thailand, rather than relying heavily on imports.

Currently, including Chinese brands such as BYD, Great Wall, MG, AION, and Changan, have already set up production bases in Thailand, and some models have even started CKD assembly locally. However, industry observers point out that many key parts are still imported from China, making it difficult for traditional Thai auto parts suppliers to truly benefit.

FTI Chairman Suwat Supakandechakul stated that Thailand already has the capability to produce many auto parts, including car seats, wiring harnesses (Wiring Harness), windshields, and other products, and local suppliers are fully capable of meeting factory needs. If these parts can be prioritized for Thailand manufacturing, it not only reduces overall production costs but also allows the local parts industry to gain greater development space.

In addition, he also suggested that the government could provide tax incentives (Tax Deduction) and other reward measures for factories with a higher proportion of local parts used, further encouraging factories to increase their localization rate, and even hoped that in the future, even high-value parts like chassis (Chassis) could be gradually realized for local production.

Besides supporting the local supply chain, Thailand's automotive industry also worries about the continuous changes in the international trade environment. Industry observers point out that the US has continued to strengthen inspections on "transshipment (Transshipment)" in recent years. If products exported to the US have most parts still from China and only assembled in Thailand, they may face stricter tariff inspections in the future, even affecting export competitiveness.

Therefore, increasing the proportion of local parts usage can not only strengthen Thailand's automotive industry competitiveness but also help reduce future international trade risks. On the other hand, the Thailand Automotive Industry Association (TAIA) also submitted several suggestions to the government, including adjusting the consumption tax policy for imported electric vehicles (CBU) to protect the local manufacturing industry.

At the same time, the association also suggested that the government could provide individual income tax incentives for consumers who purchase Thai-assembled cars, encouraging more consumers to choose locally produced models. In addition, government departments should also prioritize Thai-assembled electric vehicles when procuring official vehicles in the future to further drive market demand.

In fact, Chinese brands have invested heavily in Thailand in recent years, not only driving the location to become one of the most important EV production bases in Southeast Asia but also attracting a large number of related industries to move in. However, for the Thai government and local industries, the true goal is not merely to attract factory setup, but to hope these investments can further drive local supply chain growth, benefiting more Thai parts factories, component suppliers, and related employment opportunities.

If the government formally promotes stricter localization policies in the future, Chinese brands will inevitably need to further expand cooperation with local Thai suppliers and increase the proportion of parts procurement, which may become an important direction for Thailand's EV industry development in the future.

It is worth noting that this policy currently still belongs to suggestions proposed by industry groups to the government, not formal regulations. However, with Thailand continuing to promote automotive industry upgrades, whether more clear localization standards will be formulated in the future will become the focus of major factory owners.

Dalam beberapa tahun kebelakangan ini, semakin banyak jenama kereta China yang melangkah ke Thailand untuk menubuhkan kilang, mendorong pertumbuhan pantas pasaran kenderaan elektrik (EV) setempat. Namun, seiring dengan jenama China yang terus memperluas pelaburan, industri automotif Thailand kini mula mengajukan tuntutan baru, berharap kerajaan dapat semakin meningkatkan kadar penggunaan komponen tempatan (Local Content) bagi kenderaan elektrik, meminta kilang kereta menggunakan lebih banyak komponen yang dihasilkan di Thailand, demi memastikan rantaian bekalan setempat dapat berkembang secara berterusan.

Menurut laporan media Thailand, Persekutuan Industri Thailand (Federation of Thai Industries, FTI) serta Persatuan Industri Automotif Thailand (TAIA) baru-baru ini bersama-sama menyeru kerajaan, pada masa hadapan perlu merangka dasar komponen tempatan yang lebih baik, menggalakkan malah meminta pengeluar kenderaan elektrik untuk memprioritaskan penggunaan komponen yang dihasilkan oleh pembekal tempatan ketika menghasilkan di Thailand, bukannya terlalu bergantung kepada import.

Sekarang, termasuk jenama China seperti BYD, Great Wall, MG, AION, Changan telah menubuhkan pangkalan pengeluaran di Thailand, beberapa model kereta malah telah mula melakukan pengumpulan CKD di lokasi tersebut. Namun, industri menyatakan, banyak komponen kritikal masih diimport dari China, menyebabkan pembekal komponen automotif tradisional di Thailand tidak benar-benar menerima manfaat.

Yang dipengerusi FTI, Suwat Supakandechakul menyatakan, Thailand sebenarnya sudah mempunyai kemampuan menghasilkan banyak komponen automotif, termasuk tempat duduk kereta, Wiring Harness, cermin hadapan dan lain-lain, pembekal tempatan mempunyai kemampuan sepenuhnya untuk memenuhi keperluan kilang kereta. Jika komponen ini dapat diprioritaskan untuk pembuatan Thailand, bukan sahaja dapat mengurangkan kos pengeluaran keseluruhan, tetapi juga membolehkan industri komponen tempatan memperoleh ruang perkembangan yang lebih besar.

Sebagai tambahan, beliau juga menyarankan kerajaan boleh memberikan langkah ganjaran seperti pengecualian cukai (Tax Deduction) kepada kilang kereta yang menggunakan nisbah komponen tempatan yang lebih tinggi, untuk seterusnya menggalakkan kilang kereta meningkatkan kadar tempatanisasi, malah berharap pada masa hadapan komponen bernilai tinggi seperti Chassis, juga boleh secara beransur-ansur mencapai pengeluaran tempatan.

Selain menyokong rantaian bekalan tempatan, industri automotif Thailand juga bimbang persekitaran perdagangan antarabangsa terus berubah. Industri menyatakan, Amerika Syarikat dalam beberapa tahun kebelakangan ini terus mengukuhkan pemeriksaan terhadap「Penghantaran Semula (Transshipment)」. Jika produk yang dieksport ke Amerika Syarikat, kebanyakan komponennya masih dari China, hanya pengumpulan selesai di Thailand, pada masa hadapan mungkin menghadapi pemeriksaan tarif yang lebih ketat, malah menjejaskan keupayaan bersaing eksport.

Oleh itu, meningkatkan nisbah penggunaan komponen tempatan, bukan sahaja dapat mengukuhkan keupayaan bersaing industri automotif Thailand, tetapi juga membantu mengurangkan risiko perdagangan antarabangsa pada masa hadapan. Di samping itu, Persatuan Industri Automotif Thailand (TAIA) juga mengajukan pelbagai cadangan kepada kerajaan, termasuk mengubah dasar cukai perbelanjaan bagi kenderaan elektrik import (CBU), untuk melindungi industri pembuatan tempatan.

Pada masa yang sama, persatuan juga menyarankan kerajaan boleh memberikan diskaun cukai pendapatan peribadi kepada pengguna yang membeli kereta yang dirakam di Thailand, menggalakkan lebih banyak pengguna memilih model yang dihasilkan tempatan. Selain itu, apabila jabatan kerajaan pada masa hadapan membeli kenderaan rasmi, juga perlu memprioritaskan kenderaan elektrik yang dirakam di Thailand, untuk seterusnya mendorong keperluan pasaran.

Sebenarnya, dalam beberapa tahun kebelakangan ini, jenama China telah melakukan pelaburan besar-besaran di Thailand, tidak sahaja mendorong kawasan setempat menjadi salah satu pangkalan pengeluaran kenderaan elektrik paling penting di Asia Tenggara, malah menarik banyak industri berkaitan untuk memasuki kawasan tersebut. Namun, bagi kerajaan Thailand dan industri setempat, sasaran sebenar bukan sahaja menarik kilang kereta untuk menubuhkan pengeluaran, tetapi berharap pelaburan ini dapat seterusnya mendorong pertumbuhan rantaian bekalan tempatan, membolehkan lebih banyak kilang komponen Thailand, pembekal komponen dan peluang pekerjaan berkaitan menerima manfaat.

Jika kerajaan pada masa hadapan secara rasmi menggerakkan dasar tempatanisasi yang lebih ketat, jenama China pasti perlu meningkatkan lagi kerjasama dengan pembekal tempatan Thailand, meningkatkan nisbah pembelian komponen, ini juga mungkin menjadi arah penting untuk pembangunan industri EV Thailand pada masa hadapan.

Perlu diperhatikan, dasar ini pada masa ini masih tertakluk kepada cadangan yang dikemukakan oleh kumpulan industri kepada kerajaan, bukan undang-undang rasmi. Namun, seiring Thailand terus menggerakkan penambahbaikan industri automotif, pada masa hadapan sama ada akan menetapkan standard tempatanisasi yang lebih jelas, akan menjadi titik tumpuan yang diberi perhatian oleh kebanyakan kilang kereta.

Gasgoo learned that recently, BYD reached an important milestone in the Thailand market, with cumulative deliveries of new energy vehicles officially exceeding 130,000 units. At the same time, the BYD Thailand factory located in Rayong Province WHA Industrial Park celebrated its second anniversary of production, and the new model BYD SEALION 5 DM-i was also officially released.

Image Source: BYD

The BYD Thailand factory is its first overseas passenger car production base, with a designed annual production capacity of 150,000 units. Currently, the factory has achieved localization production for five models: BYD DOLPHIN, BYD ATTO 3, BYD SEAL 5 DM-i, BYD SEALION 5 DM-i, and BYD SEALION 6 DM-i, and all have obtained the "Made in Thailand" (MiT) certification issued by the Federation of Thai Industries.

In two years since production started, BYD in Thailand has continuously deepened its localization development, with significant results: the factory has cumulatively created over 5,000 job positions, Thai employees account for about 93%, and the local parts procurement ratio has reached 50%. This marks that BYD has deeply integrated into the Thailand automotive industry chain, effectively driving local collaborative development.

At the event, BYD delivered the 130,000th new energy vehicle to Thai consumers, the model being BYD SEALION 5 DM-i. The pre-sale price for the Standard version of this model was announced simultaneously, which will further enrich its DM-i product matrix.

Media Automotif Gale mengetahui bahawa pada masa ini, BYD telah mencapai tonggak penting di pasaran Thailand, dengan jumlah penghantaran terkumpul untuk kenderaan elektrik secara rasmi telah melepasi 130,000 unit. Pada masa yang sama, Pabrik BYD Thailand yang terletak di Wilayah Rayong, Taman Perindustrian WHA menyambut ulang tahun kedua pengeluaran, dan model baharu BYD SEALION 5 DM-i juga telah dilancarkan secara rasmi.

Sumber Gambar: BYD

Pabrik BYD Thailand merupakan tapak pengeluaran kereta penumpang antarabangsa pertamanya, dengan kapasiti pengeluaran tahunan direka 150,000 unit. Kini, pabrik ini telah merealisasikan pengeluaran tempatan bagi lima model iaitu BYD DOLPHIN, BYD ATTO 3, BYD SEAL 5 DM-i, BYD SEALION 5 DM-i dan BYD SEALION 6 DM-i, dan kesemuanya telah menerima pengiktirafan "Dibuat di Thailand" (MiT) yang diterbitkan oleh Persekutuan Perindustrian Thailand.

Dalam tempoh dua tahun selepas operasi, BYD terus memperdalam pembangunan tempatan di Thailand, dengan hasil yang ketara: Pabrik telah mencipta lebih daripada 5,000 peluang pekerjaan, nisbah pekerja berbangsa Thailand adalah kira-kira 93%, dan nisbah pembelian komponen tempatan telah mencapai 50%. Ini menandakan BYD telah sepenuhnya terintegrasi ke dalam rantaian industri automotif Thailand, dan berjaya memacu pembangunan bersama di kawasan tersebut.

Di lokasi acara, BYD menghantar kenderaan elektrik ke-130,000 kepada pengguna Thailand, model ialah BYD SEALION 5 DM-i. Harga pra-pembelian bagi versi Standard model ini juga diumumkan serentak, yang akan memperkayakan lagi senarai produk DM-i.

The Shenwan Auto Sector in A-shares lost 570 billion in market cap over the past 30 days, with a decline exceeding 11%.

A-shares Auto Sector Closing Prices for Some Listed Companies on June 22

Behind this figure, two core overseas expansion routes are being simultaneously blocked.

North America Doors Welded Shut

US tariffs on Chinese EVs were raised from 25% to 100%, with a combined tax rate exceeding 102%.

A domestic EV priced at 200,000 RMB sees its final US selling price double directly.

Last year, only 12,400 Chinese EVs were sold to the US; North America was not the main market anyway.

But this time the impact hits the supply chain—the US also introduced review rules for connected vehicle hardware and software; supply chains containing Chinese parts or chips face restrictions.

Complete vehicles and parts are locked bidirectionally.

Southeast Asia Backyard Also Tightened

Thailand was once the first stop for Chinese automakers expanding overseas, with Chinese brands holding over 80% market share in the local new energy vehicle sector.

But Thailand implemented new regulations this year: for every 1 vehicle imported, 2 must be produced locally, with the ratio increasing to 1:3 by 2027.

Batteries and core electronic controls must be produced locally; additional 10% surcharge applies if parts procurement ratios are not met.

After the new regulations took effect, Thailand's pure electric vehicle sales plummeted by 80% in the short term.

The strategy of relying on volume through complete vehicle exports no longer works.

The EU is also contemplating additional anti-subsidy tariffs on Chinese plug-in hybrids, with the highest combined tax rate potentially exceeding 45%.

The 'Domestic Production, Overseas Vehicle Export' light-asset model is being dismantled one by one by global trade barriers.

Domestic Market Also Under Pressure

In the first 5 months, domestic passenger car retail reached 7.1 million units, down nearly 20% year-on-year.

Although new energy penetration rate exceeded 63%, growth came entirely at the expense of fuel vehicle market share, with no incremental growth in the total market.

The price war has lasted 3 years; the industry average net profit margin in Q1 dropped to only 3.2%, with profit per vehicle less than 3,000 RMB.

Dealer inventory backlog exceeds 2.5 million units, and capacity utilization rate is below 70%.

Overseas tariffs raise overseas expansion costs, domestic price wars compress profit margins; squeezed from both ends, valuations naturally come down.

Time to Change Tactics

Top automakers have long abandoned the pure export route.

BYD is building factories in Hungary, Thailand, and Brazil; Great Wall and SAIC are deeply cultivating Southeast Asia to drive supply chain localization; Leapmotor and NIO are entering Europe through cooperation models.

The shift from 'Complete Vehicle Export' to 'Localization Production + Supply Chain Overseas Expansion' is a transformation forced by this wave of barriers.

The 570 billion evaporation is not an emotional fluctuation, but the market re-pricing for the era of fierce competition.

Those who survive are the companies that can build factories globally, control costs, and sustain their brands.

(Image from internet)

The Thai tire industry faced a structural shift in 2026: on one hand, global demand for electric vehicle tires drove steady growth in passenger car tire exports; on the other hand, truck and bus tires encountered high anti-dumping tariffs in key markets, causing a significant drop in export volumes.

The dual blow of electrification benefits and trade barriers is forcing the Thai tire industry to accelerate strategic adjustments.

EV Tire Demand Boosts Export Value

Latest data from the Thai Trade Policy and Strategy Office (TPSO) shows that Thailand's passenger car tire exports reached $3.88 billion in 2025, a year-on-year increase of 2.1%.Growth momentum mainly comes from the rapid expansion of the global electric vehicle market.

EV-specific tires are typically sold at 1.2 to 1.5 times the price of traditional tires, significantly increasing the unit value of exports.

TPSO pointed out that Thailand is leveraging its status as a globally leading natural rubber production base and its well-developed automotive supply chain to actively advance towards becoming a regional electric vehicle tire production center.

US Market Faces Tariff Divergence

The United States is the largest export market for Thai tires, with exports to the US totaling approximately $2 billion in 2025.

However, the anti-dumping tax rates imposed by the US on tires of different specifications vary significantly: the tax rate for Thai small car tires is 3.16%, still competitive; while the rate for large car tires reaches as high as 30.36%, far exceeding the 15% tariff level for Japanese products.

This led to a 15% year-on-year decline in passenger car tires imported from Thailand in Q1 2026, while truck and bus tires plummeted by 24%.

Some Japanese tire brands have considered moving their large tire production lines back to Japan to avoid high tariffs.

Multiple Countries Initiate Dual Investigations, Commercial Vehicle Tires Become "Heavily Impacted"

The trade blockade facing the Thai tire industry extends far beyond the United States.

The Eurasian Economic Union launched an anti-dumping investigation against Thai truck and bus tires in November 2025, preliminarily determining the dumping margin at 24.17%.

Brazil also issued the final ruling of the second anti-dumping sunset review at the end of 2025, deciding to continue levying anti-dumping duties on Thai tires for five years at approximately $1.35 per kilogram.

It is worth noting that these sanction measures are highly concentrated on commercial vehicle tires with rim diameters of 17.5 to 24.5 inches, reflecting main importing countries' vigilance against the rapid expansion of the Thai truck tire market share.

Nine Measures to Address Challenges

Facing the escalation of trade barriers, Thailand's TPSO has proposed nine policy measures, including raising inspection standards for EV tires, promoting cooperation between tire factories and EV factories, utilizing free trade agreements to expand into emerging markets, etc.

Meanwhile, localized production capacity of Chinese tire companies represented by Zhongce Rubber, Linglong Tire, and Tongyong Shares is rapidly expanding in Thailand. Tongyong Shares' Thailand Phase II project, with an investment of 1.884 billion yuan, has become a typical case of localization.

These Chinese-funded enterprises, on one hand, help Thailand consolidate its position as a tire manufacturing center, while on the other hand, they face potential risks related to origin certification and EU anti-circumvention investigations.

In the future, whether the Thai tire industry can break through in the wave of electrification will depend on the outcome of localization innovation and the game of global trade rules.