Winners of “China Plus One” | Thailand: Seeking to Become the Strategy’s Regional Hub

By Yuanyin in Tokyo

At Changan Automobile’s first overseas new-energy vehicle manufacturing base in Rayong, Thailand, the production line is running at a pace of one vehicle every 90 seconds. The Deepal S05 and Changan Qiyuan Q05 are assembled there before being shipped to 18 countries, including Indonesia, Singapore and Australia.

In the same city, BYD’s Rayong plant has just marked its second anniversary, with cumulative deliveries exceeding 130,000 vehicles. Great Wall Motor has also announced an additional investment of 10 billion baht in Thailand in 2026.

Chinese EV brands have become increasingly prominent at the Bangkok International Motor Show. In January 2026, Chinese brands briefly accounted for more than 75% of Thailand’s battery-electric vehicle market. A market dominated by Japanese automakers for half a century is being reshaped by Chinese competitors.

Thailand’s Ambition to Become an “Integrated Platform”

Thailand is Southeast Asia’s largest automotive manufacturing hub, with a mature vehicle production base. In the internal-combustion era, Japanese brands once held more than 90% of the Thai market.

But the transition to EVs is bringing more than new products. Chinese companies are importing an entire industrial ecosystem.

Seven major Chinese automakers have established production bases in Thailand, with planned capacity exceeding 600,000 vehicles. The investment is spreading beyond final assembly into batteries and other core components, with companies including CATL, Gotion High-Tech and Svolt Energy joining the local supply chain.

Thailand’s strategic ambition now goes beyond serving as a destination for relocated manufacturing capacity. The government wants to use Chinese digital technologies, smart manufacturing and green-energy capabilities to turn the country into a platform linking Chinese production with demand across ASEAN.

The establishment of the Thailand Board of Investment’s Chengdu office reflects this strategy. On July 18, 2026, Prime Minister Anutin attended the office’s opening ceremony. It is BOI’s fourth office in China and its first major outpost in western China. Thai officials have said the office will not only attract companies from Chengdu and Chongqing, but also help Chinese firms use Thailand as a base for expanding into Cambodia, Laos, Myanmar and Vietnam.

“China Plus One” Moves Into a Deeper Phase

Thailand is now moving from attracting investment to enforcing deeper localization.

Under the EV3 and EV3.5 incentive programs, automakers seeking subsidies in 2026 must commit to local production, with imported vehicles matched by locally produced units at a ratio of 1:2.

That requirement is accelerating localization. The average time from investment decision to production has reportedly been compressed to around 15 months. GAC Aion, for example, entered Thailand and brought its plant into operation after only six months of construction.

The next stage is building a complete local supply-chain ecosystem. Chinese automakers are increasingly bringing their established supplier networks into Thailand, encouraging battery makers and component producers to expand alongside them.

Thai industrial authorities have also made clear that future policy will focus on raising localization rates and developing domestic suppliers.

For “China Plus One,” Thailand is therefore becoming more than an alternative production site. It is emerging as a key node in a diversified regional supply chain.

From Manufacturing Base to Regional Hub

Thailand’s ambition goes beyond hosting factories.

During talks between Changan chairman Zhu Huarong and Prime Minister Anutin, the company outlined a longer-term localization plan: annual sales in Thailand of more than 70,000 vehicles by 2030, a second-phase expansion of the Rayong plant beginning in 2028, a localization rate above 60% by 2028, and a Thai workforce of about 3,000 by 2030.

Changan has positioned Thailand as both an Asia-Pacific regional headquarters and an important global production base.

BYD’s Thailand plant has annual capacity of 150,000 vehicles and now locally produces five models, all certified as “Made in Thailand” by the Federation of Thai Industries. Great Wall Motor is targeting 40% sales growth in Thailand in 2026.

Chinese automakers are also adopting a two-track market strategy: mainstream models for scale and premium brands for positioning. Vehicles such as the BYD Dolphin and MG4 compete aggressively on value, while Zeekr, Denza and XPeng are entering higher-end segments.

Changan plans to introduce seven new-energy models in Thailand between 2026 and 2028, while targeting a local-parts ratio of 70% by 2027.

The “China Plus One” strategy has given Thailand a window of opportunity. Thailand is trying to use that window to upgrade from a manufacturing base into a regional hub.

Its challenge is different from Vietnam’s or Malaysia’s. The most immediate risk is the gradual withdrawal of policy support. As EV3.5 moves into implementation and subsidies weaken, automakers will have to compete more on cost, quality and operational efficiency.

Thailand also faces shortages in charging infrastructure, intensifying competition and growing pressure from domestic industrial protection.

Vietnam’s advantage was being early. Malaysia’s was technology. Thailand’s is transformation.

It does not want to remain merely the “factory” of “China Plus One.” It wants to become its regional hub.

By Yuanyin in Tokyo

At Changan Automobile’s first overseas new-energy vehicle production base in Rayong Province, Thailand, the assembly line is turning out one vehicle every 90 seconds. The Deepal S05 and Changan Qiyuan Q05 are assembled at the plant before being exported to 18 markets, including Indonesia, Singapore and Australia.

In the same city, BYD’s Rayong factory has just marked its second anniversary, with cumulative deliveries exceeding 130,000 vehicles. Great Wall Motor has announced that it will invest an additional 10 billion baht in Thailand in 2026.

Chinese electric vehicle brands have also taken centre stage at the Bangkok International Motor Show. In 2026, Chinese brands accounted for more than 75% of Thailand’s battery-electric vehicle market. A market dominated by Japanese carmakers for half a century is now being redefined by Chinese manufacturers.

Thailand’s Ambition to Build an Integrated Platform

Thailand is Southeast Asia’s largest automobile manufacturing centre and has a mature vehicle production base. During the era of internal-combustion vehicles, Japanese brands once controlled more than 90% of the Thai market.

The global transition towards electric mobility, however, has brought more than Chinese-made vehicles to Thailand. Chinese companies are also introducing an entirely different industrial model.

Seven major Chinese automakers have established production bases in Thailand, with planned annual capacity exceeding 600,000 vehicles. Their involvement has moved beyond simple vehicle assembly and expanded both upstream and downstream across the industrial chain. Major component suppliers such as CATL and Gotion High-Tech have entered the market, while battery manufacturers including SVOLT Energy have also established operations. A complete supply system covering batteries, electric motors and electronic control systems is gradually taking shape.

The strategic objective of Thailand’s new government is no longer limited to serving as a destination for relocated production capacity. By introducing Chinese digital technology, smart manufacturing and green-energy solutions, Thailand hopes to become a platform connecting Chinese manufacturing capabilities with demand across the ASEAN market—a centre for adapting and applying new technologies.

The establishment of a Thailand Board of Investment office in Chengdu is a key step in that strategy. On July 18, 2026, Thai Prime Minister Anutin Charnvirakul travelled to Chengdu to inaugurate the office. It is the BOI’s fourth office in China and its first front-line outpost in western China.

Thailand’s consul-general in Chengdu said the office would not only help attract companies from Chengdu and Chongqing to Thailand, but would also support Chinese enterprises using Thailand as a strategic base from which to expand into Cambodia, Laos, Myanmar and Vietnam.

“China Plus One” Moves into Deeper Implementation

The “China Plus One” strategy has entered a more advanced stage of implementation in Thailand.

Thailand’s National Electric Vehicle Policy Committee has introduced the EV3 and EV3.5 programmes, which stipulate that manufacturers seeking new-energy vehicle subsidies in 2026 must commit to local production. The ratio of imported vehicles to locally manufactured vehicles must reach 1:2.

The policy has forced Chinese automakers to accelerate localisation. Their average time from investment decision to the start of production has been compressed to around 15 months. GAC Aion, for example, entered the Thai market and brought its plant into operation after only nine months of construction.

The core of localisation lies in building a complete supply-chain ecosystem. Chinese automakers are replicating mature domestic industrial networks in Thailand, bringing battery manufacturers such as CATL and Gotion High-Tech, along with a broad range of component suppliers, into the country.

At an APEC Automotive Dialogue meeting, Thailand’s Office of Industrial Economics stated that the country would prioritise the localisation of its automotive supply chain and actively cultivate domestic suppliers.

For the “China Plus One” strategy, Thailand is therefore not merely a recipient of relocated production capacity. It is becoming a critical node in supply-chain diversification.

From Manufacturing Winner to Regional Hub

Thailand wants to become a regional hub, but its ambitions extend beyond that label.

During a meeting with Prime Minister Anutin, Changan Automobile Chairman Zhu Huarong presented a detailed timetable for the company’s expansion. Changan aims to sell more than 70,000 vehicles annually in Thailand by 2030, begin the second phase of its Rayong plant expansion in 2028, raise its localisation rate above 60% by that year and employ 3,000 people in Thailand by 2030.

Thailand is positioned within Changan’s global strategy as its Asia-Pacific regional headquarters and an important global production base.

BYD’s Thai factory has a designed annual capacity of 150,000 vehicles and has already localised production of five models. All have received “Made in Thailand” certification from the Federation of Thai Industries. Great Wall Motor, meanwhile, plans to increase its sales in Thailand by 40% in 2026.

Chinese automakers are pursuing a differentiated strategy in the Thai market: mainstream models are being used to build scale, while premium brands are strengthening market positioning.

Models such as the BYD Dolphin and SAIC Motor’s MG4 are competing in the mass market through attractive pricing, while premium brands including Zeekr, Denza and XPeng are entering the market to fill gaps in segments priced above RMB300,000. Changan plans to introduce seven new-energy vehicle models to Thailand between 2026 and 2028 and aims to raise the local sourcing rate for vehicle components to 70% by 2027.

The “China Plus One” strategy has given Thailand a period of opportunity. Thailand is using that window to upgrade itself from a manufacturing base into a regional hub.

As a beneficiary of “China Plus One,” Thailand faces challenges different from those confronting Vietnam and Malaysia. Its biggest concern is the gradual withdrawal of policy subsidies. As the EV3.5 programme moves into full implementation and subsidy support declines, automakers will need to find a new balance between cost control and product quality.

A shortage of charging infrastructure, increasingly intense competition and pressure from domestic industrial protectionism are also difficult issues that Thailand must address.

Vietnam gained by moving early. Malaysia gained through technology. Thailand is gaining through transformation.

It does not want to remain merely a factory within the “China Plus One” strategy. It wants to become the strategy’s regional hub.