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BYD Uses Thai Hub to Sidestep EU Tariffs

China’s BYD has marked another milestone in its global expansion, with the first shipment of Thai-assembled Dolphin electric vehicles bound for Europe. Over 900 units have been dispatched to Germany, Belgium and the United Kingdom, signalling a new chapter in the company’s international strategy.

The consignment set sail aboard BYD’s own carrier vessel, the BYD Zhengzhou, which for the first time has operated a route from Thailand to Europe. The vehicles were produced at the company’s Rayong plant, a facility that went into operation in July 2024 and stands as BYD’s first wholly owned passenger car manufacturing site outside of China.

Built with an annual capacity of 150,000 vehicles, the Rayong factory serves both the domestic Thai market and export destinations. Within just a year of starting operations, the plant had already achieved 90,000 deliveries by July this year, underscoring its role as a crucial hub for BYD’s regional and global supply network.

The Rayong site operates as a CKD (Completely Knocked Down) facility, producing vehicles that are shipped in parts before being assembled locally. This manufacturing method helps reduce import tariffs while supporting local industry in export markets.

BYD emphasised that the export of Thai-made Dolphins to Europe demonstrates both progress in its globalisation strategy and Thailand’s rising importance in the international EV supply chain.

The decision to manufacture in Thailand comes as Chinese-made EVs face growing trade barriers in Europe. Following an anti-subsidy investigation by the European Union, BYD was subjected to an additional tariff of 20.7% on top of the existing 10% customs duty, a measure aimed at curbing imports of subsidised Chinese electric vehicles. By shifting production to Thailand, BYD is able to sidestep some of these trade restrictions while maintaining competitive pricing in Europe.

From January to July this year alone, BYD sold 545,003 electric vehicles in overseas markets, representing a sharp 133.5% increase compared to the same period in 2024. With production now expanding beyond China, the company is strengthening its foothold in key international markets and furthering its ambition to become a dominant player in the global EV industry.

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