Chinese EV makers take centre stage at Bangkok Motor Show

Boosted by strong electric vehicle (EV) sales, Chinese carmakers will be in the spotlight at the Bangkok International Motor Show this week, underscoring the growing challenge to Japanese car giants that have long dominated Thailand's vehicle market.

Chinese carmakers such as Geely's Zeekr and state-owned Xpeng Motors are slated to unveil their latest EVs to Thai customers as they debut at the Bangkok motor show, a week-long expo that opens to the public on Wednesday.

On Monday at a media preview, the EV newcomers showcased their cars and technology at slick booths shoulder to shoulder with those from market leaders such as Toyota Motor that are household names in Southeast Asia's second-largest economy.

Hangzhou-headquartered Zeekr will launch two EV models in Thailand in June and open 10 showrooms in the country this year as part of a wider expansion in Southeast Asia, vice-president and head of emerging market Mars Chen said.

Chen said Zeekr planned to position itself in the premium segment. “In the premium segment there's a lot of room for a new player such as us,” he said.

Zeekr will compete with Chinese companies such as BYD and GWM that have the biggest share of Thailand's EV market.

Guangzhou-based Xpeng, which is showcasing a flying drone car at its booth, plans to open five showrooms in Thailand this year to offer higher-end EVs, said Elsa Zhang, senior manager for its overseas business.

Chinese carmakers have committed to invest more than $1.44bn (R27.34bn) in production facilities in Southeast Asia's largest car manufacturing hub. Thailand is looking to convert about 30% of its annual vehicle production to EVs by 2030.

The expansion by Chinese EV makers in Thailand comes against the backdrop of intensifying competition at home where carmakers are racing to cut prices.

In 2023, Thais bought 73,500 battery EVs, about 9% of domestic car sales, and that is expected to double by the end of 2024, according a Federation of Thai Industries (FTI) forecast.

Local EV production capacity is expected to reach 100,000 cars by the end of 2024 as new facilities, mainly from Chinese carmakers, come online, said FTI automotive industry spokesperson Surapong Paisitpattanapong.

Last year Thailand produced 164 battery EVs.

“EV sales are rising while internal combustion engine (ICE) vehicles sales are falling,” Surapong said, attributing the change to cheaper EV models.

“With that ICE car price, you can get a top EV model from several brands. Higher petrol prices are also helping EVs.”

But market leaders such as Toyota, Isuzu and Honda are also working to maintain their grip.

Major Japanese car manufacturers are set to invest 150bn baht (R82.37bn) in Thailand over five years.

Isuzu plans to use Thailand as a production base for an electric version of its D-Max pickup truck, with an aim to start exports in 2025, a Thai government spokesperson said last week.