Replacing Japan?This time, China is leading the transformation of Detroit in Asia .

Mondo Sports Updated on 2024-01-29

On December 13, the reference news network **Dao, the United States' "Wall Street**" published an article entitled "Chinese Automakers Lead the "Asian Detroit" Electrification Transformation" on December 8, the author is Felice Solomon. The following is an excerpt from the full text:

Japanese companies have been a driving force behind Thailand's rise as a car-making powerhouse since Nissan started producing cars in Thailand in the early '60s. Now, Japan's rival China is coming, and it's bringing Thailand into the era of electric vehicles.

On the outskirts of Rayong Province, Thailand's car-making capital, not far from the industrial park where Japan's car factory is located, BYD, China's largest electric car maker, is building what industry experts believe will be Thailand's largest car factory. Six other Chinese companies have produced or committed to producing electric vehicles here, with an eye on domestic demand and Thailand's status as an export hub thanks to regional freedom** agreements.

China's aggressive entry into Thailand shows its ambition to dominate the global electric vehicle market and squeeze traditional giants such as Japan out of the market. As China's major automakers' products become more prevalent in many parts of the world, they are looking to set up production lines outside of China to expand their reach, boost sales, and take advantage of incentives introduced by various countries**.

This is a challenge for Japan, the traditional hegemon. China is a rising star in the race, willing to invest its part in new products. Japanese automakers, by contrast, are largely trying a slower transition that will protect their existing revenues** while leaving room for change.

The secretary-general of Thailand's Board of Investment, Nai Tesdila Sudi, said that Chinese companies "have the technology, the design and the ambition". He helped draft a new policy to promote the production and adoption of electric vehicles. He said there was "room for everyone to benefit from the policy," but Chinese companies had taken the lead.

Chinese automakers have swept the domestic market, overshadowing international brands such as Volkswagen and Toyota. China's auto exports have grown significantly, surpassing South Korea and Germany in recent years, and surpassing Japan, the world's largest auto exporter, in the first three quarters of 2023.

Often referred to as the "Detroit of Asia", Thailand has a highly skilled workforce and extensive experience in the international automotive market, which is lacking in most of its neighbors.

While most Chinese automakers tend to rely on their own chains – importing parts from China or bringing their automakers with them, Thailand says there are about 2,000 domestic automakers ready to help with the transition to electric vehicles.

Automakers in Japan and other countries are also beginning to change direction. Honda Motor plans to start production of electric vehicles in Thailand this year. Toyota will launch its first electric pickup truck in Thailand next year as a small pilot project.

Thailand's Ministry of Industry Senior ** Nathapong Rang Sibang said that while Thailand welcomes the transition to electric vehicles, it does not want to alienate existing players. "We want to keep it balanced," he said. (Compiled by Madan).

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