Not long ago, while hailing a ride through Grab in Kuala Lumpur, the author met a Chinese-Thai driver who was in the process of setting up a charter fleet.

He was quite young and spoke with great enthusiasm about his entrepreneurial ambitions and the next car he planned to buy—a green BYD Qin.

In his vision, the vehicle’s spacious seating and ample storage would make it ideal for long-distance travel, enabling him to handle more charter orders.

"The car must be green!"

Puzzled, the author asked why green. The driver explained that it symbolized youth, vitality, and visibility.

The "Qin" he mentioned is known as the Seal 6 EV in Malaysia and had just introduced a Sage Green color option in May of that year. For this young entrepreneur, a new energy vehicle was not just a trendy purchase but a crucial tool for his business.

A month later, several hundred kilometers away in Rayong, Thailand, BYD celebrated the rollout of its 100,000th new energy vehicle from its local factory.

One scenario highlights the purchasing plans of a Malaysian driver, while the other marks a significant production milestone at a Thai factory. Together, they illustrate two key aspects of BYD's expansion into Southeast Asia—consumer demand and manufacturing capability.

Intensifying Competition

In July 2024, BYD's Thai factory began operations. According to company disclosures, the facility was constructed in approximately 16 months and boasts an annual production capacity of 150,000 vehicles. It encompasses stamping, welding, painting, and final assembly processes, along with components manufacturing. The first model to roll off the line was the Dolphin, which also marked BYD's 8 millionth new energy vehicle produced globally.

There are practical reasons for choosing Thailand as the site for BYD's first overseas passenger vehicle production base.

Thailand has long been a hub for automotive production and export in Southeast Asia, with well-established scales in vehicle manufacturing, parts supply, and export channels. BYD is entering an automotive industrial system that is rapidly transitioning toward electrification.

Changes on the demand side are equally pronounced.

Data from Thailand's Board of Investment indicates that in the first seven months of 2026, battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and conventional hybrids accounted for 55% of new vehicle registrations.

Focusing on BEVs, data from Thailand's Department of Land Transport reveals that 67,184 new passenger BEVs were registered in the first seven months of 2025, increasing to 126,439 in the same period of 2026—an 88.2% year-on-year rise.

As the market expands, so does the competition.

In the first seven months of 2025, BYD and Denza registered approximately 24,900 vehicles combined, compared to around 24,400 in the same period of 2026. While Thailand's BEV market grew by nearly 90%, BYD and Denza's registrations remained largely flat, with new demand flowing to other competitors.

Market share figures are even more revealing. BYD and Denza's combined share was 37.0% in the first seven months of 2025 but dropped to 19.3% in the same period of 2026. Close behind was the Chery brand group, with a share of 18.5%.

If we look at July alone, the top three BEV passenger vehicle registrations were from the Geely brand group, Chery brand group, and SAIC MG, with BYD absent from the top three.

Market shares fluctuate with new model launches and delivery schedules. While BYD remains a leader, its advantage has narrowed significantly.

Pricing is also a critical aspect of competition.

Promotional terms announced by Thai distributor RVER for September 16–30 show that both the Premium and Extended variants of the ATTO 3 come with a base discount of 130,000 Thai baht. The discounted prices are 669,900 and 769,900 baht, respectively, representing reductions of approximately 16.3% and 14.4% from the original prices.

Nevertheless, BYD maintains an edge in the PHEV market, holding a 46.1% registration share for passenger PHEVs in the first seven months of 2026.

This is where the local factory comes into play. Production scheduling and delivery timelines can be optimized closer to consumers, allowing BYD to participate in Thailand's emerging new energy vehicle supply chain.

As more brands enter the market, the first-mover advantage must be sustained through consistent supply and product competitiveness.

The Deeper Significance of the Factory

BYD's Thai factory now produces both BEVs and PHEVs, with the 100,000th vehicle being an ATTO 3.

Currently, the factory manufactures five models: the Dolphin, ATTO 3, SEAL 5 DM-i, SEALION 5 DM-i, and SEALION 6 DM-i, all certified as "Made in Thailand." According to BYD, about 95% of the factory's employees are Thai nationals, and the local procurement ratio is approximately 50%, indicating deep integration into local employment and supply chains.

Localization is also extending to suppliers.

BYD has established partnerships with 266 local parts manufacturers and suppliers, of which 125 produce materials and components in Thailand. Over 1,090 parts have received certification from the Thailand Automotive Institute.

Whether an auto factory remains in a location long-term depends not only on assembly line jobs but also on whether local companies can consistently supply the procurement list and produce more critical components. While the number of suppliers provides a foundation, the specific procurement volume and the proportion of high-value parts better reflect the depth of the local industrial chain.

The destination of the products gives the Thai factory a second layer of significance.

BYD's Thai factory has exported over 24,000 vehicles, with exports accounting for about 40% of its production volume in the first half of 2026. Export destinations include ASEAN countries, South Asia, Australia, and Europe.

In August 2025, Thai-made Dolphins were shipped to Europe for the first time. For a factory initially serving Thailand and neighboring markets, European orders have expanded its market reach. By allocating models and production volumes across regions, the value of the Thai base is no longer tied to a single market's demand.

Exports are also driven by Thai policies. Given the limited size of the local market, policies encourage automakers to integrate Thai factories into broader sales networks.

Take EV3 and EV3.5 as examples: incentives link import benefits to subsequent local production. According to adjustment plans announced by Thailand's Board of Investment, each locally produced EV exported counts as 1.5 units toward fulfilling production obligations.

Policy directions continue to evolve. In September 2026, Thailand's National Electric Vehicle Policy Committee agreed in principle to restructure the automobile excise tax system, proposing to link import and tax incentives to automakers' local investment, parts procurement, and employment contributions.

While the plan is still at the principle-agreement stage, the signal is clear. Building a factory in Thailand is just the first step in entering the industrial system. Sustaining production and procurement locally aligns more closely with the next phase of policy priorities.

For BYD, which already has a factory and supplier network, its initial investments provide a foundation, and policy adjustments will further steer competition toward local procurement and skilled employment.

At the performance level, the weight of overseas business is steadily increasing.

BYD's 2026 interim report shows that it exported 792,000 vehicles in the first half of the year, up 67.8% year-on-year. The group's overseas revenue reached approximately 181.268 billion yuan, accounting for 52.6% of total revenue—over half of the group's income structure now comes from overseas markets.

From Overseas Production to Overseas Operations

As the business radius expands, the operational system must extend accordingly. The Thai factory offers a concrete example: after equipment and processes are established, how production experience is transferred to local teams similarly affects the factory's development.

Reports indicate that since late 2024, BYD's Rayong base has implemented a "Seed Talent Program," sending Thai operation team leaders and engineers to China for training. The training covers R&D, prototyping, and production launch, with trainees returning to Thailand to take on management roles and participate in technical and daily communication between Chinese and Thai teams.

The value of such training lies in equipping those familiar with local language and work habits with the factory's technical requirements and problem-solving methods. While manufacturing standards must remain consistent, on-site communication and personnel management need to adapt to local conditions. The gradual growth of local managers helps reduce reliance on expatriates and ensures that production experience remains stable within the factory.

Talent development is also extending to after-sales services. In March 2026, Chengdu Industrial Vocational and Technical College and BYD Auto Thailand held a special recruitment event for the third Thailand Project Class, with positions available at multiple after-sales service centers in Bangkok, covering new energy vehicle maintenance and fault diagnosis.

The automotive business spans far longer than a single delivery. As vehicles enter daily use, the convenience of repairs and timely handling of faults continue to shape consumer perceptions of the brand. The production side needs skilled workers, and the service side requires local personnel who understand the models and technology. Establishing a sustained talent pipeline for these roles supports the brand's long-term operations locally.

Thus, the investment brought by overseas factories extends beyond buildings and production lines. Training, technical support, and after-sales services require ongoing development. The personnel and experience accumulated can then support subsequent models and business expansion. While these efforts yield slower returns, they are crucial for maintaining a stable operational foundation amid product updates.

This approach of extending operational functions locally is also evident in Europe. In May 2025, BYD announced plans to establish its European business headquarters and R&D center in Budapest, Hungary, with functions covering sales and after-sales, vehicle certification testing, and localized model design and feature development.

Placing some R&D and operational functions close to the market helps shorten the distance between consumer feedback and product adjustments. Usage habits, road conditions, and service needs in different regions can more directly inform corporate decision-making. For automakers with expanding overseas operations, this feedback capability is as important as manufacturing capacity.

Thailand's experience thus holds longer-term reference value. The broader the overseas footprint, the more coordinating uniform technical standards with local operational flexibility becomes a routine task.

Returning to the rollout of the 100,000th vehicle, this factory has already achieved more than just production volume. From introducing products to the market to involving local teams in manufacturing, service, and operations, BYD's global expansion is accumulating a different kind of depth.

Beyond the 100,000th vehicle, production volume is just one figure. Its true value will gradually emerge as these teams participate in operating more models over extended periods.