March 26, 2023
Chinese cars are coming to steal the Japanese car market in Thailand / by Invest Man
Right now, looking at the road We should start seeing more and more Chinese electric car brands.
is ATTO from BYD company
Or ORA Good Cat by Great Wall Motor Company.
which is important this is a sign that these Chinese car brands are coming to compete for a share of the car market in Thailand
From old Japanese champions like Honda, Toyota that most cars are still gasoline cars.
Did you know that..
This doesn’t just happen on the road.
But it also happens in manufacturing factories.
which now we can say Thailand is the battleground of car production between China and Japan
Invest Man will tell you about it.
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Many people know that Thailand is one of the centers of car production. important in the region for a long time
especially Japanese car manufacturers
This started about 38 years ago when Japan was hit by the Plaza Accord in 1985.
The Plaza Accord is an agreement that the United States made with its trading partners. to help reduce the US trade deficit
effect of this agreement Make the value of the Japanese Yen double immediately.
In 1985, 242 yen equaled 1 US dollar.
In 1986, 153 yen equaled 1 US dollar.
when things like this make Japanese products Look more expensive in the eyes of the world until it can not be sold.
In order to lower product prices, companies in Japan have to find ways to reduce costs. by choosing to move the production base to low cost countries
which is Thailand It is one of the main destinations. because as well as having a location that is easy to transport There is still a lot of cheap labour.
establishing a production base of Japanese car manufacturers in Thailand made the Thai economy boom
Not only do many Thai people get jobs
but also produces a large number of other businesses that support car production as well
especially the supplier of these car camps
such as the business of manufacturing car parts, tyres, automotive electrical systems Including car export business going abroad
All these mean that Thailand has a supply chain system. of complete car production
and attract other nations to build their factories even more
until Thailand even received the nickname Detroit The City of Southeast Asia similar to Detroit of the United States which is also a major car manufacturing base
by almost every car manufacturing center in Thailand It is a Japanese brand.
However, the arrival of electric cars may change everything
In recent years there are many brands of electric cars or EV cars emerging. most of them come from China
Partly because the Chinese government subsidizes projects, research and development related to electric vehicles.
In addition, many people probably know that China also has a conflict with the United States. and the West along it
to reduce the risk of conflict and reduce labor costs
Chinese car camp therefore chose to establish a production base in ASEAN countries as well
With the strength of the supply chain system, Thailand itself is one of the important destinations. of car camps from China
The biggest deal belongs to the BYD camp, which signed a contract to buy more than 600 rai of land in September 2022 from WHA Rayong 36 Industrial Estate in Rayong. to build an electric vehicle manufacturing plant
by this factory It will start producing electric cars by 2024
This agreement also makes China become the foreign investor with the highest investment value in 2022, surpassing Japan holding the position since 1994
Prior to that, WHA had sold the land. SAIC Motor and Great Wall Motor own ORA Good Cat and Haval.
In the future, there may be car brands from China. to set up more factories
read here we might say Chinese car brands
has become the main challenger of Japanese car brands in Thailand by default
that has to be seen Japanese brand side How will there be an adjustment? after the invasion of Chinese brands
because now The Japanese car camp factory. Most of them focus on the production of fuel cars
which of course is affected by the growing popularity of electric cars
We must continue to pursue that. How will this story end?
Who will be the winner in this battle for the production base?
But no matter on which side the victory falls