Chinese electric vehicle manufacturers, including BYD, have begun increasing prices in Thailand following the end of government purchase subsidies, a move signaling a shift in the Southeast Asian nation’s leading EV market. The price of BYD’s Atto 3 SUV rose at the end of 2025, according to reports.
The price adjustments come as Thailand aims to become a regional hub for EV production. In July 2024, BYD opened its first electric vehicle plant in the country, a US$490 million facility with an annual production capacity of 150,000 vehicles. The plant is part of a broader wave of investment exceeding US$1.44 billion from Chinese EV companies, spurred by government incentives and tax breaks.
Under a government incentive program designed to boost domestic EV production, carmakers were initially exempt from import duties but obligated to match import volumes with local production. Though, some companies have struggled to meet these requirements. Neta, an early entrant into the Thai market in 2022, faced challenges in fulfilling its production obligations for 2024, leading to a rollover of the shortfall into 2025. The company has reported difficulties in local production, resulting in withheld government payments, according to Excise Department official Panupong Sriket.
The number of Chinese EV brands operating in Thailand has doubled in the past year, reaching 18, intensifying competition and putting pressure on smaller players lacking the scale of industry leader BYD, which recently surpassed Tesla as the world’s largest EV maker. BYD is utilizing Thailand as a production base for exports to the Association of Southeast Asian Nations (ASEAN) and other countries, according to Narit Therdsteerasukdi, secretary-general of the Thailand Board of Investment.
BYD is also expanding its production footprint outside of China, with plans to build a facility in Hungary to serve the European market. This move comes as the European Commission prepares to impose tariffs of up to nearly 38 percent on Chinese-made EVs, while tariffs on China-made EVs will be around 17 percent.
Thailand’s ambition is to convert 30 percent of its annual vehicle production of 2.5 million vehicles to EVs by 2030. The country has traditionally been dominated by Japanese automakers like Toyota, Honda, and Isuzu.
