The Board of Investment (BoI) is encouraging more than 160 local auto parts manufacturers to partner with Chinese electric vehicle (EV) maker BYD in a move to strengthen the EV supply chain.
The manufacturers were recently invited to participate in BYD Sourcing Day, an event aimed at introducing parts manufacturers to BYD and facilitating their business matching.
“To promote the EV industry, the BoI not only grants investment privileges to investors, but also emphasises business deals between parts makers and EV manufacturers,” said Narit Therdsteerasukdi, secretary-general of the BoI.
Participants in the event, co-organised by the BoI, BYD Auto (Thailand) and WHA Corp in Chon Buri, came from various segments, including manufacturers of powertrains and battery components, as well as with providers of services and maintenance, repair and operations.
These segments are important for BYD’s EV business in Thailand. BYD has received investment privileges for six projects from the BoI worth 30 billion baht.
Last year the company announced it bought a 600-rai plot from WHA Industrial Development Plc, a subsidiary of WHA Group, to construct its EV factory.
The land is located within WHA Rayong 36 Estate in Rayong. BYD’s investment in Thailand follows the government’s policy to promote the EV industry.
The government listed EV manufacturing as one of 12 targeted S-curve industries in the Eastern Economic Corridor, which covers parts of the provinces of Chon Buri, Rayong and Chachoengsao.
Early last year, the cabinet approved a package of incentives including tax cuts and subsidies to promote EV consumption and production during 2022-23.
According to the BoI, BYD commands a 35% market share (around 15,000 cars) in the country’s EV sector. BYD receives orders for around 200 cars per day on average, according to the company.
Last year BYD announced it expects to start operating its electric passenger car plant in 2024. The annual production capacity is 150,000 EVs.
The BoI not only grants investment privileges to investors, but also emphasises business deals between parts makers and EV manufacturers. NARIT THERDSTEERASUKDI Secretary-general, Board of Investment