BYD is rapidly ramping up its EV production capacity in Southeast Asia as a leaked image shows trial production of a right-hand drive Atto 3 at the company’s new factory in Thailand.
The Indonesian government has also confirmed BYD will commence construction another factory in Indonesia as soon as next month. News of BYD’s growing presence in Southeast Asia comes as the company’s founder says plug-in electrics will exceed 50% of all new car sales in China within the next 3 months.
“Today, a Chinese insider with the nickname “源之头2018” reported that BYD started trial manufacturing at the Thailand plant. According to his sources, mass production will start here next month.” reported Car News China last week. The post shows an image of what looks to be a right-hand drive Atto 3 surrounded by factory workers.
Construction on the new Thailand factory only began 0n March 10 2023, meaning if BYD reaches mass production in April, as per the insider’s comments, it will have gone from groundbreaking ceremony to mass production in just 13 months. At full production the factory is expected to produce 150,000 electric vehicles per year.
“The mass production start will allow BYD to intensify its expansion in Thailand and the Asia-Pacific market.” says Car News China.
BYD to commence construction of Indonesian factory next month
As BYD starts production at its Thailand factory, news has emerged the company is about to start construction of another factory in Indonesia with estimated $US1.3 billion investment. According to Indonesian automotive news site Otomotif, the Chinese EV maker will start construction as soon as April 2024.
” The Minister of Investment, Bahlil Lahadalia, said that one of the agendas planned by the government for April 2024 is the inauguration of the groundbreaking for BYD’s electric car factory.” reports Otomotif.
“He said information on the investment value was obtained from company executives. Apart from that, the production capacity of the BYD factory is estimated at 150,000 units with three electric car models, namely Dolphin, Atto3 and Seal.”
“The government continues to encourage BYD to increase local content so that it can encourage industrial competitiveness,” said Indonesian Minister of Investment, Bahlil Lahadalia.
New factories in Southeast Asia could supply Australian right-hand drive market
Like Australia, the majority of south Southeast Asian countries are right-hand drive meaning the new factories in Thailand and Indonesia could also supply the Australian market. Having a number of right-hand drive factories in Southeast Asia producing low-cost electric vehicles would be a game changer for the Australian auto market and represents a serious threat to Japanese incumbent fossil car makers who currently dominate Australian passenger vehicle sales.
BYD building factories around the world at a blistering pace
The commencement of production at BYD’s Thailand factory and the announcement of a new factory in Indonesia are just two of a number of new factories being rollout out around the world by the Chinese EV maker.
In January Brazil’s President Luis Inácio Lula da Silva announced BYD’s new EV factory in Brazil. In a sign of the times, the Brazilian factory will be the first BYD factory outside Asia and is being constructed at a site of a former Ford factory.
Pela manhã, recebi representantes da BYD Brasil, empresa de automóveis elétricos, que vai criar sua primeira fábrica fora da Ásia no Brasil. Além da entrega de um carro elétrico para uso da Presidência da República em comodato, a BYD apresentou um relatório detalhado do plano de… pic.twitter.com/xzWQK05vGj
— Lula (@LulaOficial) January 24, 2024
Prospect of new factories accessing US and Europe markets sets alarm bells ringing
While it already dominates the Chinese market, in February BYD signalled its intension to go after the US and European markets by building factories in Hungry and Mexico. But it seems that won’t be easy as other locations with politicians in the US and EU are already flagging protection measures.
Soon after the Mexico announcement, US Republican presidential candidate Donald Trump claimed if elected he will place a 100% tariff on cars built in Mexico by Chinese car makers.
Meanwhile last week the CEO of French carmaker Renault said Europe is “facing an onslaught” of electric vehicles in China and that the EU should implement a post WWII style “European Marshall Plan” to transform its auto industry in order to survive.
As BYD expands its global EV production at blistering pace, it’s becoming clear that European, Japanese and US legacy automakers have been sound asleep at the wheel.
Daniel Bleakley is a clean technology researcher and advocate with a background in engineering and business. He has a strong interest in electric vehicles, renewable energy, manufacturing and public policy.