As Tesla slashes prices in China, Chinese car makers seek refuge in Southeast Asia - to build new plants overseas

Following Tesla China’s move to slash its vehicle prices in late-2022 which resulted in a price war, competition has stiffened a fair bit, affecting practically all major car makes in China.

As a result, this has prompted Chinese car makers to look beyond China for growth opportunities and several domestic Chinese marques have began construction work on new manufacturing plants overseas.

According to a report by Automotive News China, China’s largest EV manufacturer, BYD Co., on 10-March, broke ground for a new factory in Thailand. The new factory is set to go online in 2024 and has a 150,000-unit annual capacity.

Also Read: BYD is China's best-selling domestic brand, over 1.8 million cars sold in 2022

​ Also on the same day, Hozon New Energy Vehicle Co. also broke ground for a new factory in Thailand. Also set to go online in 2024, Hozon’s new plant will have an initial annual capacity of 20,000 vehicles. One of the brands under Hozon is Neta, which has Malaysia in its sights.

Also Read: Your budget EV wish granted? Neta V teased for Malaysia, 384 km NEDC range, only RM 68k in Thailand

Similar to Great Wall Motors and its Rayong plant, BYD and Hozon’s new plants in Thailand will be their right-hand drive production hub, exporting these Thai-assembled vehicles within Thailand and the ASEAN region.

Changan Automobile Co. also announced plans for a new factory in Southeast Asia, though the state-owned company did not reveal where the plant will be located. That said, Changan’s officials mentioned that the new factory will go online before 2025.

Also Read: Thailand is now China's third largest EV export market

Apart from building new manufacturing plants, Chinese car makers are also looking into building their own ships to transport vehicles.

One such manufacturer is SAIC Motor Co, which currently has 9 ships in their fleet and is looking to expand their fleet to 19 in the near future.

In fact, Chery Automobile Co. also began building its own ships in late-2022.