Chinese brands exporting to overseas countries require huge transportation costs and long time, while bearing a high risk of shipping in the middle, and the probability of shipment loss is far greater than that of China. The most important thing is that the export of cars needs to pay high tariffs to every country, so BYD's first overseas factory was born. It is reported that BYD is expected to invest 17.891 billion yuan (about 3.383 billion yuan) to build the first overseas factory in Thailand, Southeast Asia. This is also the first country where BYD went to sea to build a factory, which is of epoch-making significance.
From January to July this year, Thailand imported 51,300 new energy vehicles from China, becoming the third largest overseas export of Chinese own brand cars. Moreover, the Thai market is not as protectionist as the United States and Western Europe, and local consumers recognize Chinese culture and Chinese industrial products, which is conducive to the smooth construction of BYD New Energy in Thailand.
BYD's Thailand plant is huge, with a planned annual production capacity of 100,000 units, comparable to the capacity of Honda's largest plant in Thailand.
The reason why Thailand welcomes Chinese BYD to enter the Thai market so quickly is that BYD is willing to build a joint venture with Thailand's largest automobile group: Myuro Automobile Group, and BYD only accounts for 15% of the joint venture company, which helps Thailand upgrade the automobile industry and technology for free, at the same time, it is conducive to the great development of Thailand's environmental protection cause, reducing the emission of pollutants from oil vehicles, and benefiting the local environment.
Why is BYD's joint venture in Thailand so low at 15%? It is mainly based on BYD exporting spare parts to Thailand, and then assembling CDK locally in Thailand for joint venture Thai production.
The shares held by BYD's Thailand factory are a little less, but the key technologies and components are all purchased by BYD, and the Thai joint venture party is working for BYD!
In fact, this is how the Japanese car joint venture is played in China, but it makes more money than this! BYD has learned the Japanese joint venture method, but it is much more conscientious than the Japanese. For example, the best-selling Japanese compact joint venture car, selling 110,000 days at the same time, the Japanese side in the accessories to earn more than 40,000 joint ventures, is simply a huge profit, this is not enough, Japanese car companies also have patent licensing fees are 15% of the retail price of the model, which is why Volkswagen has audi Porsche Bentley such a super luxury brand company, but also can not earn a field.
BYD has made a good profit in assembly parts, and should be able to make a lot of money in the supply of spare parts such as follow-up power batteries. With Thailand's industrial capacity, it is almost impossible to replace the core technology of BYD spare parts by itself, so BYD can also be very assured to open a joint venture factory in Thailand. In this way, Malaysia has auspicious, Thailand has BYD, and Indonesia has Chery, which is booming and prosperous.
BYD's Plant in Thailand is expected to produce EV all-electric and DMI plug-in hybrid models, which will start production in 2024 to meet the entire Southeast Asian market.
At the same time, starting in October this year, BYD will temporarily sell more models to the Thai market by export, and a number of BYD SSSS dealership stores in Thailand will open one after another, with the main sales models being compact and hatchbacks such as Dolphin and Yuan PLUS.
Thailand has become the largest exporter of China's new energy vehicle brand! In July, a total of 12,700 units were exported to the Thai market, which was very popular. Thailand is also the largest automobile producer in Southeast Asia, Japanese brands, especially Honda, are particularly dependent on Thai production capacity and market, BYD so much fanfare to build a factory in Thailand, the most feared is Honda.
Everyone knows very well that the Southeast Asian market has always been the home of the Japanese system, BYD represents the entire Chinese new energy automobile industry and national automobile industry, if you want to compete with Toyota, Honda, Nissan, Mazda in the world, you must build a joint venture factory in Southeast Asia with abundant human resources and cheap, to meet the sales volume of the local market, and at the same time, you can also export to other Southeast Asian countries.
BYD this time is very generous to Thailand a lot of other countries do not have a popular blockbuster model, speed Song PLU, Tang EV, Han EV, Tang DMI, Yuan PLUS, Dolphin have. Other Australia, Japan, Germany, and New Zealand only supply dolphins, seals, and yuan three models, and are limited to 1,000 cars a month.
With BYD's far ahead in sankyo technology, and many models are more cost-effective than Tesla, more models, and lower entry prices. Therefore, BYD's factory projects have become a fragrant feast overseas, and they are all scrambling for it. Unlike Thailand, it is the center of the automobile industry in the whole of Southeast Asia, the home of the entire Japanese system, and the main source of raw materials
If BYD works harder to eat the Southeast Asian market, it is equivalent to completely breaking the foundation of Japanese cars.