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Xpeng, Zeekr, and More Set to Enter Thailand, Expanding Across Southeast Asia
Xpeng and Zeekr are entering the Thai market, aiming to expand across Southeast Asia. Thailand has become a strategic location for Chinese automakers due to its status as the largest car producer and exporter in Southeast Asia. The Thai government's favorable subsidies and tax breaks for EVs have driven the demand for electric vehicles in the country.
Chinese electric vehicle manufacturers, Zeekr and Xpeng Motors, have announced their plans to enter the Thai market later this year. The move comes as these companies seek to expand their presence in Southeast Asia, capitalizing on the growing demand for electric vehicles (EVs) in the region.
Thailand, known as Southeast Asia's largest car producer and exporter, has become an attractive location for Chinese automakers looking to diversify their operations and mitigate geopolitical risks. Researchers from the Global Policy Institute have highlighted the strategic importance of Thailand for these companies.
The Thai government has been actively promoting the adoption of EVs, offering favorable subsidies and tax breaks for EV purchases. As a result, EVs accounted for approximately 10% of car sales in Thailand last year. The government aims to increase this percentage to around 30% by 2030, making Thailand a regional manufacturing hub for EVs.
Xpeng has already taken steps to establish its presence in Southeast Asia. The company has partnered with three major dealer groups in the region: Neo Mobility Asia for Thailand, Premium Automobiles for Singapore, and Bermaz Auto for Malaysia. Xpeng plans to start delivering its G6 crossover in these countries in the third quarter of 2024.
Similarly, Zeekr has announced its plans to enter the Thai market with its compact crossover X and multi-purpose vehicle 009. The company will open its first store in Bangkok later this year and has already begun pre-sales in Thailand. Zeekr also has expansion plans in other Southeast Asian countries, including Laos, Myanmar, and the Philippines.
Chinese automakers are also ramping up local production in Thailand to meet the government's requirements. The Thai authorities have mandated that companies offset imports with local production at a ratio of 1:2 starting from 2026 to qualify for government subsidies.
BYD, one of the leading EV manufacturers, will begin operations at its $491 million car plant in Rayong later this year. The plant will have an annual output of 150,000 units for both Thailand and the wider Southeast Asia region. Aion, an affiliate of China's GAC Group, is also set to start production at its first overseas plant in Thailand in July, with an annual output of 50,000 units.
Other Chinese automakers, including Changan, SAIC, Great Wall Motor, and Hozon Auto, are also investing in local production facilities in Thailand to cater to the growing demand for EVs in the region.
As Chinese car brands continue to expand their presence in Thailand and other Southeast Asian countries, they are poised to capture a larger market share in the region. With the Thai government's support and the increasing demand for EVs, these companies are well-positioned for further growth in Southeast Asia.
Xpeng and Zeekr are entering the Thai market, aiming to expand across Southeast Asia.
Thailand has become a strategic location for Chinese automakers due to its status as the largest car producer and exporter in Southeast Asia.
The Thai government's favorable subsidies and tax breaks for EVs have driven the demand for electric vehicles in the country.
Source: TECHNODE