Warren Buffett-backed BYD signs deal to build its first electric car plant in Thailand

The Chinese EV maker’s factory will be built in WHA Corp’s industrial estate in Rayong and production of cars will start in 2024
BYD plans to invest about US$823 million to produce electric vehicles, according to Thailand’s Eastern Economic Corridor Office

Electric & new energy vehicles

Bloomberg

Published: 2:12pm, 8 Sep, 2022

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Chinese electric-car maker BYD signed a land purchase deal on Thursday with WHA Corp, Thailand’s largest industrial-estates developer, to build its first electric vehicle production plant in Southeast Asia.

The plant is expected to start operation in 2024 and have an annual capacity of 150,000 vehicles, mostly for export to Southeast Asia and Europe, the companies said in a joint statement.

The deal follows BYD’s partnership with local distributor Rever Automotive, which announced last month it will start selling BYD cars in several dealerships across Thailand by the end of 2022. BYD has announced its entry into several overseas markets in recent months, including Denmark, Germany, Israel, Japan and Cambodia.

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Behind the scenes at BYD Auto: China’s biggest electric vehicle factory

The site covers 96 hectares (237 acres) at WHA’s Rayong 36 Industrial Estate. WHA said the deal is its “most significant” in 20 years, with chief executive Jareeporn Jarukornsakul adding that the developer plans to launch phase two of the Rayong Estate in anticipation BYD’s presence will spur other EV investments.

“More EV supply chain will follow BYD here,” she said.

BYD plans to invest about 30 billion baht (US$823.3 million) to produce electric vehicles, according to Thailand’s Eastern Economic Corridor Office.

Thailand’s Board of Investment last month approved BYD’s 18 billion baht plan to manufacture battery-powered vehicles and plug-in hybrid electric vehicles in the country.

BYD triples first-half profit to US$520 million, sales surge 300 per cent

The Chinese EV maker, backed by Warren Buffett’s Berkshire Hathaway, is among the latest companies to take advantage of the Thai government’s tax incentives, a key part of a plan to make Thailand – a long-standing car manufacturing powerhouse – become the EV production hub of Southeast Asia.

The Thai government earlier this year allocated about 43 billion baht through 2025 to promote the use of EVs as part of the effort.