On the 16th (local time), at the intersection near Asok Station in Bangkok, Thailand. After observing about 100 cars passing through a single lane for a little over 10 minutes, Japanese cars accounted for most, followed by a noticeable number of BYD electric vehicles from China. Japan has long dominated the Thai auto market, but Chinese brands have been gaining a stronger presence recently.
Japanese automakers entered Thailand in the 1960s and set up assembly plants, building a division-of-labor supply chain that sourced engines and transmissions from Thailand and the Philippines, respectively, and assembled vehicles in Indonesia by using the AICO (ASEAN Industrial Cooperation) scheme, which applied a low 0%–5% tariff on parts sourced within the ASEAN (Association of Southeast Asian Nations) region. In 2010, Japan's share of the Thai auto market reached 92.3%.
But cracks are forming in Japan's once unchallenged lead in Thailand's auto market. As the shift to electric vehicles accelerates, Chinese EV makers such as BYD are expanding their share in Thailand by leveraging lower prices.
According to Nikkei Asia, among new cars sold in Thailand in April, Japanese automakers accounted for 65%, down 25 percentage points (P) from the same period a year earlier (90%). Toyota ranked first overall with a 38% share, but its sales fell 8% year over year, while Isuzu's sales dropped 18%, leaving it with a 12% share. Honda's sales fell 42% year over year, recording a 7% share.
By contrast, six Chinese automakers including BYD reached a record high of 24%. Among them, BYD led with 14%. BYD's April sales rose 7.3 times year over year, surpassing Isuzu's 12% and Honda's 7% shares. On the 20th of this month, BYD reached a cumulative 100,000 vehicles sold in Thailand.
BYD's popularity in Thailand is thanks to its affordable prices. Kat, a staffer at a BYD store near Asok Station, said, "Until now, many buyers chose Japanese cars purely for brand recognition, but BYD is popular because it is cheaper." BYD models on sale in Thailand start at 499,900 baht (about 21.69 million won).
Prices for Japan's Toyota vary by model, but among passenger cars, the lowest-priced model, the Yaris ATIV, sells for 549,000 baht (about 24.10 million won). The highest-priced Toyota passenger car, the Camry, starts at 1,475,000 baht (about 64.77 million won). Honda's prices are similar to Toyota's. The lowest-priced Honda passenger car, the City, sells for 599,000 baht (about 26.31 million won), while the top-end Accord is 1,479,000 baht (about 64.96 million won).
BYD models on sale in Thailand total seven: Atto 3, Seal, Seal 5, Dolphin, Sealion6 DM-i, Sealion7, and M6. Kat said, "Atto 3 and Sealion7 are the most popular," adding, "Depending on customer preferences, some look for a sport utility vehicle (SUV)."
Hyundai Motor has also set its sights on the Thai market. In Aug. last year, Hyundai invested 1 billion baht (about 43.34 billion won) to start construction of an EV assembly plant and a battery module plant in Thailand. Starting next year, Hyundai plans to produce 5,000 electric vehicles annually in Thailand, including the Ioniq 5.
The issue is price. While Hyundai's performance is good in Thailand, it is perceived as expensive. Nan, a staffer at a Hyundai pop-up store set up at Central Chiangmai airport, a shopping mall near Chiang Mai Airport in northern Thailand, said, "Hyundai is on the expensive side for Thais to buy."
The Santa Fe on display at the site that day was priced at 1,749,000 baht (about 75.71 million won), and the Tucson, sold under the name Creta, was priced at 929,000 baht (about 40.21 million won). The lowest price for the popular Staria in Thailand was 1,659,000 baht (about 71.82 million won).