In its efforts to expand in Southeast Asia, Vietnam’s indigenous electric vehicle maker VinFast has signed partnership agreements with 15 dealers in Thailand. The carmaker is looking to tap growing demand in the region. Deal with the dealers in Thailand were made at this week’s Bangkok International Motor Show as the country is looking convert about 30% of its annual vehicle production into EVs by 2030, fueling the competition among EV makers. Various manufacturers of battery-powered vehicles are seeking to use the regional automaking hub as a manufacturing base.
VinFast enters the market at a time when Chinese EV brands such as BYD and Great Wall Motor are selling strongly in Thailand and market leader Tesla is in talks with Thai authorities for a production facility. This will make the competition among EV makers tough and VinFast will have to lock horns with global EV leaders.
Currently, BYD has the biggest share of Thailand’s EV market while Guangzhou-based Xpeng too plans to open five showrooms in Thailand this year to offer higher-end EVs. “VinFast and the dealers will actively work towards opening 22 showrooms concentrated on major roadways in the Greater Bangkok Area, key focus of VinFast’s expansion strategy in Thailand,” VinFast said in a statement.
Last year, 73,500 battery EVs were sold in Thailand, making up 9% of domestic car sales, and that is expected to double by the end of 2024, according a Federation of Thai Industries forecast. VinFast, which started to make EV in 2021 and listed on Nasdaq last year, plans to expand to 50 countries. It sold nearly 35,000 cars in 2023.
Last month, the company also officially announced its entry into the Indian automotive landscape with a manufacturing facility proposal in the state of Tamil Nadu. The Vietnamese EV-maker has committed an investment of USD 500 million, which it plans to spend over the course of next five years. The upcoming facility is said to spread across 400 acres and produce around 1,50,000 vehicles annually. The facility will be set up within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate.