Thailand a rising hub for Chinese automakers

Thailand is positioning itself as a vital overseas manufacturing base and regional R&D hub for Chinese automakers, seeking to deepen bilateral cooperation in the automotive sector and tap into the expanding global markets for new energy and intelligent vehicles.

This strategic ambition was highlighted by Thai industry representatives at the Chongqing Automotive Innovation Conference 2026 last week.

As one of ASEAN's top automotive exporters, Thailand produces between 1.5 million and 2 million vehicles annually, of which roughly 1 million are shipped to more than 130 countries and regions.

With a 60-year industrial heritage and a network of nearly 2,000 local suppliers, the country boasts a complete regional supply chain and hosts R&D centers for global manufacturers.

"We want to build Thailand into the second home for Chinese OEMs and jointly develop our automotive industries into a global center," said Kriengsak Wongpromrat, president of the Thailand Automotive Institute.

"Joint local R&D is essential to adapt Chinese EV and intelligent vehicle technologies to Thai and Southeast Asian road conditions and infrastructure," he said.

Thailand's EV market has gained remarkable momentum this year, driven by sustained policy support initiated in 2022. In the first half of 2026 alone, local battery electric vehicle sales exceeded 100,000 units, matching the total for all of 2025.

Eight major Chinese automakers — including BYD, Changan, Chery, and Great Wall — have established local production facilities, pushing the country's total EV production capacity beyond 500,000 units.

However, significant localization hurdles remain. Kriengsak noted that Thailand's congested urban roads, high motorcycle density, limited smart transport infrastructure and right-hand traffic differ markedly from China's.

In addition, divergent UN automotive certification frameworks — Thailand follows the 1958 Agreement, while China adheres to the 1998 Agreement — complicate direct technology deployment, forcing some manufacturers to disable certain intelligent features in local models.

To bridge these gaps, Thailand is pursuing closer collaboration with China in R&D testing, technical standard alignment and talent development.

As a government-backed industry think tank under the Ministry of Industry, the Thailand Automotive Institute is positioned to serve as a joint innovation sandbox, helping to localize Chinese new energy and connected-car technologies for ASEAN markets and global right-hand-drive regions.