The exclusive Thai distributor of BYD plans to triple its dealerships within the next two years. A strategic move aimed at solidifying BYD's leading position in the Thai market.
In the fourth quarter of the previous year, BYD surpassed Tesla (NASDAQ:TSLA) to become the top EV maker globally. The expansion in Thailand serves as a significant step in BYD's global expansion strategy, particularly in markets where its U.S. competitor has not yet established a strong presence.
BYD’s initiative is crucial as the growth of electric vehicle sales in China, BYD's home market, is slowing down.
Rever Automotive, the distributor responsible for BYD's introduction to Thailand in late 2022, has ambitious plans to add 200 dealerships by the end of 2025. Additionally, the company aims to broaden its offerings in commercial vehicles and venture into new segments within the passenger car market, according to CEO Pratarnwong Phornprapha in a statement to Reuters.
"By the end of this year, we'll have 200. And the next year, we're planning for another 100," Pratarnwong said.
"I think around 300 for us is a healthy number." Added the CEO.
With around 100 outlets, Rever has helped BYD secure a dominant 40% market share in Thailand's growing EV market. In 2023, BYD sold 3 million passenger vehicles, with over 90% in China and around 242,000 units overseas.
Thailand contributed 20% to BYD's international sales in Q3, maintaining its status as BYD's largest overseas market. BYD is investing $504 million to build a factory in Thailand, set to open this year, further cementing its position in the thriving Thai market.
In Q3 2023, EVs constituted 7% of Thailand's passenger vehicle sales, but the country is among the fastest-growing EV markets in Southeast Asia, thanks to government subsidies. The approved subsidy package offers up to 100,000 baht ($2,764) per EV, coupled with reduced import duties and excise taxes.
Thailand aims to convert 30% of its annual vehicle production to EVs by 2030, attracting over $1.44 billion in investments from Chinese auto companies.