Japanese Media: The "Detroit of Asia" Is Changing
According to a September 29 report by Japanese media outlet 47NEWS, Thailand—a hub for Japanese automakers—is undergoing transformation.
As a key nation in Southeast Asia, Thailand hosts approximately 6,000 Japanese companies and around 72,000 Japanese residents. Following the postwar strengthening of economic ties, relations between the royal families of Japan and Thailand have remained cordial. Despite this enduring friendship, recent developments—including narrowing economic disparities and expanding Chinese influence—have introduced new dynamics. A notable manifestation is the declining share of Japanese car sales in the Thai market.
In late April, Thai Prime Minister Anutin displayed his personal vehicle at his residence in Bangkok—a fully electric car produced by China’s BYD. He personally drove the vehicle, with Chinese Foreign Minister Wang Yi seated in the passenger seat. The moment quickly became a trending topic across Thai media and social platforms.
A BYD dealer in northeastern Thailand told reporters: “Some customers visit our store specifically because they know it’s the prime minister’s car. Our visibility has increased rapidly.” Public interest in electric vehicles is rising, partly due to soaring gasoline prices triggered by deteriorating shipping conditions in the Middle East.
Thailand has long been recognized as a central hub for automotive manufacturing and export in Southeast Asia, earning the nickname “the Detroit of Asia.” As a stronghold for Japanese manufacturers, Japanese-branded vehicles accounted for about 85% of the domestic market as of 2020. By 2025, this share had fallen below 70%. Chinese automakers are mounting a vigorous challenge.
The competitive environment for Japanese manufacturers is now increasingly unfavorable, particularly due to Thailand’s policy framework promoting electric vehicles. This policy first reduces tariffs and expands import access for EVs. Through subsidies and tax reductions, manufacturers sell vehicles at discounted prices, while production within Thailand becomes mandatory. Chinese automakers have swiftly adapted, initially boosting sales through exports.
Why is the Thai government pursuing such a policy? The aim is to reduce reliance on internal combustion engine vehicles and sustain Thailand’s status as “the Detroit of Asia.” Yet Chinese automakers have also faced criticism. A statement issued by Thai industrial groups expressed concern that Chinese factories in Thailand only assemble imported components without sourcing locally. Consumers have likewise voiced dissatisfaction with slow responses from these companies when vehicles encounter malfunctions.
According to Thailand’s Ministry of Transport, registrations of electric vehicles and hybrid vehicles (HV) are projected to reach approximately 10,000 units per month in 2025, maintaining a tightly contested balance. Hybrids—where Japanese manufacturers like Toyota hold strong technical advantages—retain high residual values and enjoy widespread public trust in Thailand.
Nevertheless, Chinese automakers are gaining momentum. Shoji Yamamoto, head of the Nomura Research Institute’s Thailand branch, stated: “Currently, Japanese automakers are at a disadvantage. They must reinforce consumer recognition of the quality of Japanese vehicles and deepen collaboration with Thai policymakers.”
Original article: toutiao.com/article/1877632596443148/
Disclaimer: The views expressed in this article are those of the author alone.