【By Guancha Observer Network, Zhou Shengming; Edited by Gao Shen】
According to a May 20 report from Nikkei Chinese website, China's auto-related enterprises are expanding their supply chain construction in Thailand, with the total number of enterprises increasing threefold in recent years.
The report stated that due to the impact of tariffs from Europe and America, Chinese automobiles are exploring demand in the Asian market with Thailand as their base. It is reported that more than 20 Chinese automobile brands, including BYD and Great Wall, have entered Thailand, and some Chinese car companies have also started localized production of electric vehicles in Thailand.
Driven by this trend, component enterprises required for vehicle production are accelerating their presence in Thailand.
In the Thai economic zone "Eastern Economic Corridor (EEC)" about two hours' drive from Bangkok, capital of Thailand, Chinese automotive parts enterprises are actively constructing facilities. One of them is "Sunwoda Electronics," a battery enterprise.
Nikkei Chinese website
It is reported that Sunwoda plans to invest over $1 billion to build an electric vehicle lithium battery production base in Thailand. The factory is expected to start mass production within 2025. Notably, the factory will produce battery packs starting from the cell. Relevant personnel from the Thai government expressed expectations, stating: "This may become the first battery factory in Southeast Asia to start production from the cell."
Sunwoda's investment in Thailand is just one example of Chinese auto parts manufacturers going overseas. Nikkei Chinese website stated that in addition to Sunwoda, other large Chinese battery enterprises have also successively gone overseas to Thailand.
For instance, Zichuang New Power, Guoxuan High-Tech, and SVOLT Energy Technology have all established factories in Thailand, and some enterprises have already initiated local production. Moreover, CATL has reached an agreement with PTT Group, and they will jointly build a battery pack production plant.
The overseas trend of Chinese auto parts enterprises does not stop at battery companies—Ningbo Tuopu Group, an automotive parts company, announced in mid-April that it would invest up to $300 million to construct a new factory in Thailand. Ningbo Tuopu also mentioned that the capacity of the Thai factory will serve overseas customers.
"Many Chinese enterprises began to accelerate the relocation of their factories to Thailand since the intensification of Sino-US trade friction around 2018," Nikkei Chinese website stated.
According to statistics from research firm MarkLines and Thai government data, by March 2025, the number of local Thai legal entities funded by Chinese enterprises in the auto-related parts sector had reached 165, which is 3.4 times that of the end of 2017 when the Sino-US friction escalated comprehensively. Additionally, according to data from the Ministry of Commerce of China, the number of legal entities set up by Chinese enterprises in Southeast Asia such as Thailand exceeded 7,000 by 2023 and continues to grow. In the same year, China's direct investment in Southeast Asia also exceeded $25 billion, setting a historical record.
Nikkei Chinese website
Nikkei Chinese website stated that since 1960, Japanese automakers and parts enterprises have been establishing production bases in Thailand. Currently, there are 1,400 related suppliers for Japanese automakers in Thailand.
"Chinese suppliers almost do not use the supply chain established by Japanese automakers, (they) are attempting to build a new industrial structure," Nikkei Chinese website stated.
An executive from Thai Summit Group, a large Thai automotive parts manufacturer, pointed out, "Parts provided by Chinese suppliers have cost competitiveness, and Japanese automakers may also switch to using these parts."
The report analyzed that although Toyota and Honda, among others, still maintain over 70% of the market share in Thailand, this figure continues to decline under the strong offensive of Chinese enterprises.
"If Chinese enterprises continue to expand their supply chains locally, their competitiveness will further increase, and the dominant position of Japanese automakers may be even more shaken," Nikkei Chinese website commented.
This article is an exclusive contribution by Guancha Observer Network and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7506733978213286409/
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