Chinese EV makers enter Thai Market amid western tariffs

China’s electric vehicle (EV) companies are expanding into Thailand, a key industry hub, as Europe and the United States impose tariffs to limit their entry.

GAC Aion, a Chinese EV maker, set up its first overseas operation in Thailand a year ago. Starting with no office, factory, or local employees, the team quickly adapted, selling their first vehicle within 74 days.

Chinese EV manufacturers like Aion are rapidly entering overseas markets, with Thailand being one of the first to see this influx. The impact is visible with billboards advertising Chinese cars and rising land prices due to new car factories. Aion adapted its vehicles for the Thai market by enhancing air conditioning and strengthening chassis for local roads.  

Chinese brands are slashing prices in an increasingly competitive field, as part of Beijing’s strategy to dominate the new energy vehicle sector. After years of government support, Chinese manufacturers excel at mass-producing EVs and have established reliable supply chains to lower costs.

In response, the European Union recently announced tariffs of up to 38% on Chinese EVs, and the United States quadrupled tariffs on Chinese-built EVs to protect domestic industries from a potential influx of cheaper Chinese vehicles.