BUSINESS

BYD Exports Thai-Made EVs to Europe Amid Local Glut

Published: Aug. 27, 2025 4:13 p.m. GMT+8

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BYD has started shipping Thai-made vehicles to Europe to ease the situation and meet policy targets. Photo: XInhua

Chinese electric-vehicle giant BYD Co. Ltd. (002594.SZ) has begun exporting cars from its new factory in Thailand to Europe, as automakers grapple with a production glut in the local Thai market.

On Monday, BYD Auto (Thailand) Co. Ltd. announced the first shipment of more than 900 Dolphin hatchbacks from its Thai facility. The vehicles are destined for Germany, Belgium, and the Netherlands.

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BYD began exporting over 900 Dolphin EVs from its new Thai factory to Europe amid local overcapacity, with the plant operating below its 150,000 annual vehicle capacity.
Thailand's EV subsidy policies, favoring local production, have led to a glut: 386,000 annual unit capacity vs. just 70,000 domestic sales in 2024.
Policy adjustments now let exports count more towards local quotas; meanwhile, the EU imposes 7.8%-35.3% tariffs on Chinese (27% for BYD) EVs, affecting competitiveness.

AI generated, for reference only

Who’s Who

BYD Co. Ltd.: BYD Co. Ltd. (比亚迪股份有限公司) has started exporting cars from its new factory in Thailand, its first overseas passenger-car production base, to Europe. The factory began operations in July 2024 with an annual capacity of 150,000 vehicles. The move aims to alleviate production glut in Thailand, as the plant is currently running below full capacity. BYD faces a combined 27% tariff on exports to the EU.

BYD Auto (Thailand) Co. Ltd.: BYD Auto (Thailand) Co. Ltd. is BYD's first overseas passenger-car production base, located in Thailand. It began operations in July 2024 with an annual capacity of 150,000 vehicles. The company recently started exporting Dolphin hatchbacks from this facility to Europe to address production glut in the Thai market.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. is one of several Chinese automotive companies that has established operations in Thailand. Like other automakers, SAIC is facing challenges due to an oversupply of EV manufacturing capacity in the Thai market, which far exceeds local demand. It is experiencing high inventory levels, leading to a focus on exporting as a solution to absorb surplus production.

Great Wall Motor Co. Ltd.: Great Wall Motor Co. Ltd. (601633.SH) is one of the Chinese automakers that have invested in Thailand, drawn by government subsidy programs. These programs require automakers to invest in local production and meet annual localization ratios. The influx of manufacturers has led to an oversaturated EV market in Thailand, making exporting an essential strategy to manage excess capacity.

Guangzhou Automobile Group Co. Ltd.: Guangzhou Automobile Group Co. Ltd. (601238.SH) is among the Chinese automakers that have established a presence in Thailand. These companies were drawn to the country by government subsidy programs designed to promote electric vehicle production. The influx of manufacturers has led to production capacity exceeding domestic demand, making exports a crucial strategy for these companies.

Chongqing Changan Automobile Co. Ltd.: Chongqing Changan Automobile Co. Ltd. (000625.SZ) is one of several Chinese automakers that have established operations in Thailand. These companies were drawn by government subsidy programs aimed at promoting electric vehicle production in the country.

AI generated, for reference only

What Happened When

Mid-2022：: Thailand introduced its EV3.0 policy, granting subsidies to both imported and locally built EVs.

By 2023：: Imported and locally built EVs in Thailand continued to receive equal subsidies under EV3.0.

From 2024：: Only locally produced EVs in Thailand qualify for EV subsidies under the revised EV3.0 policy.

January 2024：: Thailand launched the successor EV3.5 policy, extending some support for imported EVs until 2025.

July 2024：: BYD's factory in Thailand, its first overseas passenger-car production base, began operations.

Late October 2024：: European Union imposed five-year anti-subsidy tariffs (7.8%-35.3%) on Chinese battery-electric cars, plus a 10% import tariff.

2024：: Thailand sold about 70,000 EVs.

2024：: Localization ratio requirement for automakers in Thailand set at 1:1 (locally produced vehicles to imported ones sold).

First half of 2025：: Thailand sold approximately 57,000 EVs.

July 30, 2025：: Thailand’s National Electric Vehicle Policy Committee approved adjustments to EV3.0 and EV3.5 policies to stimulate exports.

August 25, 2025：: BYD Auto (Thailand) Co. Ltd. announced first export shipment of over 900 Dolphin hatchbacks to Germany, Belgium, and the Netherlands.