Japanese Car Share Plummets in Thailand, China Gains

News: Production

2024-02-27

Japanese Car Share Plummets in Thailand, China Gains

THAILAND REPORT
Akihiro Komuro
Akihiro Komuro

The share of Japanese automakers in Thailand’s new car market, once considered a “stronghold for Japanese cars,” is plummeting. This is due to the rapid adoption of electric vehicles due to the government’s preferential policies and the rise of Chinese manufacturers focusing on electric vehicles. Thailand is also the largest automobile manufacturing base in Southeast Asia, and this could affect the entire regional market. According to a tally by Toyota Motor’s Thai subsidiary, the nine Japanese giants will have a combined market share of 77.8% in 2023. They once held a 90% share, but the 2023 mark was 7.6 percentage points lower than the previous year.

In Thailand, companies that import EVs can receive a subsidy of up to 150,000 baht (about $600,000) per vehicle and a tariff reduction of up to 40% if they sign a memorandum of understanding with the government. More than 10 companies, including Chinese EV giant BYD, have signed the MOU because of the lower selling price.

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2023 Domestic MC Shipments Increase 4%

JAPAN REPORT

Domestic motorcycle shipments increased for the first time in two years to 376,720 units in 2023, up 4% from the previous year. Class 2 mopeds, which have relatively low maintenance costs, performed well, increasing 47% year-on-year. The shortage of semiconductors and the easing of logistics disruptions also contributed to the increase in shipments.

Class 1 mopeds (50cc and below) fell by 29% to 92,824 units. Class 2 mopeds (over 50cc and under 125cc) were up 47% to 149,655 units, light motorcycles (over 125cc and under 250cc) were up 16% to 66,630 units and small motorcycles (over 250cc) were down 6% to 67,611 units.

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Hyundai Motor Sells Chongqing Plant in China

SOUTH KOREA REPORT

The company sold the plant to Chongqing Liangjiang New Area Yufu Industrial Park Construction and Investment Group, which is owned by the city of Chongqing, and its affiliate will use the plant as a production base for electric vehicles.

Hyundai Motor Company has sold its finished car plant in Chongqing, China, to a Chongqing government-owned company for 1.62 billion yuan (about 33 billion yen, $222 million) in December 2023. Hyundai Motor is rushing to restructure its Chinese business, which has suffered from sluggish sales, and concentrate its management resources in the U.S. and Southeast Asia.

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Thailand Lithium Deposit World’s Third Largest

THAILAND REPORT
Akihiro Komuro
Akihiro Komuro

The Thai government has announced the discovery of a large lithium deposit, calling the deposit the third largest in the world after Bolivia and Argentina. It has estimated reserves of approximately 14.8 million tons. The deposit was found at two sites in the southern province of Phang Nga. However, it will take some time to find out how much of the discovered resources can be used.

Thailand is keen to become the center of EV production in Southeast Asia, leveraging its experience in assembling conventional cars, and the discovery of the lithium deposit will give the country a boost in achieving this goal.

Source: AFPBB

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