China's EV Market Share in Thailand Plummets Amid Policy Rollbacks and Localization Push

In January this year, Chinese brands historically surpassed Japanese automakers with a market share of 47.3%. However, in February, Thailand tightened its EV subsidy policy (EV 3.5), and the import excise tax on vehicles rebounded to 10%, causing Chinese brands’ market share to plummet to just 12%. BYD’s monthly sales dropped sharply from 12,000 units to only 295. Yet in March, surging oil prices reignited fuel-related anxiety among consumers, enabling Chinese brands to stage a strong comeback during the Bangkok International Motor Show—securing nine of the top 12 spots in new orders. Faced with the withdrawal of government support, Chinese automakers are accelerating localization: planning annual production capacity of up to 550,000 vehicles, promoting local manufacturing of core components like batteries, and shifting toward hybrid models to address insufficient charging infrastructure. However, their real challenge lies in building robust after-sales networks, improving parts supply chains, and enhancing brand trust. Only by deeply integrating into Thailand’s local automotive ecosystem can Chinese automakers win a sustained battle in Japan’s traditional stronghold.