China’s Automotive Brands Secure Second Place in Thailand’s Market Share

Thailand’s automotive market, with sales and exports both surpassing the million-unit mark, has emerged as a vital arena for Chinese automobile manufacturers. The market not only stands as a crucial destination for full vehicle exports but has also become a hotspot for China’s automakers to establish offshore plants. Building upon the presence of leading manufacturers such as SAIC, Great Wall, and Foton, Chang’an, BYD, and HOZON are slated to commence operations by 2024. Moreover, Taiwan-based Foxconn has also ramped up investments in the market.

In June 2023, Thailand’s automotive market witnessed sales of 64,400 units, indicating a 5.2% YoY decrease and a near 1% MoM dip—a pattern consistent with normal seasonal fluctuations. However, the market’s recovery hasn’t yet reached pre-pandemic levels.

China’s brands recorded sales of 6,766 units in June 2023, reflecting a remarkable 99.1% growth compared to the same period last year, marking an increment of 3,368 cars. This surge is reflected in the market share, where China’s brands achieved a market share of 10.5%, up by 5.5 percentage points from the previous year, positioning them as the second-largest car series in Thailand’s automotive landscape after Japanese brands.

In the January to June period of 2023, cumulative sales of Chinese brands in Thailand reached 37,000 units, marking a robust 78.7% growth over the same period last year, representing a surge of 16,300 cars. This translates to a cumulative market share of 9.1%, a growth of 4.3 percentage points compared to the same period last year. MG brand led the Chinese pack with 2,368 units, ranking sixth with a market share of 3.7%. BYD secured the seventh spot with 1,857 units and a market share of 2.9%. HOZON followed as the tenth most popular brand with 1,384 units and a 2.15% market share, while Great Wall secured the thirteenth position with 1,134 units and a 1.8% market share.

In the January to June period of 2023, the top 15 brands collectively registered sales of 403,000 units, constituting a market share of 99.3%. MG brand achieved 13,100 units, ranking seventh and holding a 3.2% market share, surpassing Mitsubishi. BYD secured the eighth position with 11,200 units, surpassing various Japanese brands, and holding a 2.7% market share. HOZON ranked twelfth with 6,402 units, possessing a 1.6% market share, trailing only Suzuki. Great Wall, with 6,222 units, clinched the thirteenth position with a 1.5% market share, surpassing Hyundai.

Chinese brands have capitalized on the advantage of electric vehicle (EV) models and competitive pricing, outperforming their Japanese counterparts. Notably, the retail price of the BYD Atto3 has surpassed 220,000 yuan ($34,200), signifying an over 87,000 yuan ($13,500) difference from the official domestic price. Both MG and Great Wall have introduced EV models, expanding their product lines and offering tiered pricing. MG’s EP series models boast a dealer price exceeding 200,000 yuan ($31,100).

With Thailand’s electric vehicle penetration expanding into double digits, China’s automotive brands stand to gain from their early-mover advantage.