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China eats up EVs, the end of Japanese car makers in Thailand
LIVE STYLEIrene Live StyleAugust 4 2023
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China will become the world’s largest car exporter. knocked down giants like Germany and Japan Interestingly, in Thailand The region used to be a major car manufacturer like Japan. Why did you lose to China? What is the turning point?
Why is the Chinese automobile industry growing by leaps and bounds?
Since 2022, China’s automobile industry has grown rapidly. Car exports rose 57 percent, becoming the world’s second-largest car exporter, surpassing Germany. And in the first quarter of 2023, exports increased by 76%, surpassing the old champion like Japan andAn important turning point is electric cars.China’s rapid growth comes from two main factors: Availability and the right timing As western automakers struggled with a shortage of chips and key components in their car production, Because the sources that sell parts to them are scattered in many countries.
But the Chinese manufacturers have all the necessary parts to produce cars and modern technology. making it possible to produce more cars While western car manufacturers have to reduce production.
In addition, the Russo-Ukrainian War caused many western countries to boycott Russia. So Russia has to buy more cars from China. Chinese automakers such as Great Wall, Chery and Geely took advantage of the situation and sold more cars to Russia.
The turning point of the automobile market in Thailand from Japan to China
beginning Thailand’s automobile industry began in 1950 when the government wanted to develop the economy from agriculture to industry. Therefore, it is an opportunity for Japan to choose to invest in Thailand. Because at that time Japan was looking for a new production base with low wages.Japan is the first to pioneer and dominate the Thai automotive market for a long time. Being a pioneer in the Japanese automotive market, it has alliances with many automotive companies in Thailand such as Siam Motors or Toyota Tsusho (Thailand).
from the investment of Japan in 1962 and has been operating for a long timeThailand has become an important market for automobiles in Southeast Asia. It has a production base for assembling and making automotive parts.
Until the year 2017, Thailand became the 12th largest car producing country in the world because of Thai-Japanese cooperation.
current Group of companies that produce and assemble Japanese cars in Thailand like Siam Motors Start looking for other ways in the automotive business. By changing the pole to negotiate with many Chinese car manufacturers to produce high-end electric cars. Instead of negotiating with former allies like Japan
It indicates that the automobile industry in Thailand is changing. Previously, Japanese companies dominated the market and were major manufacturers in Thailand. But nowadays, Chinese companies have become more active. This is caused by people today wanting to use electric cars.
Thai trends have changed. Electric cars are the future
Last year, electric cars or EVs became a choice that Thai consumers were very interested in due to 2 main reasons:Oil prices soar: The Russo-Ukrainian War resulted in higher oil prices in Thailand. Because Russia is an energy superpower. (Natural gas and oil) When the war broke out, many countries sanctioned Russia. Including the export of Russian oil had to be stopped.
But oil is still a necessity that people around the world have to use. when demand is high but fewer available resources As a result, the price of oil doubled. And now there is no sign of decreasing at all.
The Thai government has a policy to support EV cars: In addition to the issue of the environment that the Thai government is pushing. The Thai government sees EVs as the future that will allow the Thai industry to grow further. This is the same point of view when Japan gives opportunity to invest in building a car factory in Thailand.
Thailand has set a goal that by the year 2030, Thailand will become a major electric vehicle production center in the region. Therefore, it is doing its best to attract investment from Chinese electric car companies.
As a car factory in Thailand has a good foundation Have the ability to procure parts necessary for production within the country. The Thai government is therefore confident and even more supportive by issuing policies to support electric cars, such as reducing rates or waiving import duties. excise tax rate reduction Giving subsidies to EV car buyers, making electric cars affordable.
These reasons make EVs gain a lot of attention in Thailand. attract both Thai consumers And Chinese manufacturers to invest in. In the year 2022, when China began to aggressively in the EV industry, Japan with insistence and confidence in combustion vehicles.
Neither Toyota, Nissan nor Honda of Japan have shown any signs of developing electric cars. Even if the world trends change This is the point that creates a great opportunity for China to play a role as a pioneer of electric cars in Thailand. And has gained the confidence of both Thai car companies and the government in terms of progress and expertise in producing electric cars.
China eats up EVs, the end of Japanese car makers in Thailand | Techsauce
China will become the world’s largest car exporter. knocked down giants like Germany and Japan Interestingly, in Thailand The region used to be a major car manufacturer like Japan. Why did you lose to China? What is the turning point? Why is the Chinese automobile industry growing by leaps and...
