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Friends who have been following our updates should know that we went to Thailand for team building last week.

Speaking of this neck brother, I am excited. As a Southeast AsianThe country with the strongest modification culture, a JDM holy land that is purer than Japan.The "Thai" style is world-famous.

Really, it would be fun just to go to Thailand to see the cars.

Due to historical reasons, many old cars in Thailand can be preserved.

They carry the history of the flourishing of car companies in the last century

Every Saturday night, a fixed car gathering at PTT REST AREA in Bangkok

Let me show you a few more photos taken on the roadside. The modification base in Guangdong is nothing compared to what it is in Thailand.

There are already many Japanese cars in Thailand, and with the prevalence of modification culture, even family cars will be modified with wide bodies, wheels, etc. It is simply a paradise for car fans.

However, when we arrived in Thailand, we discovered a little "discordance".

In Bangkok, there is a Chinese new energy billboard every few steps. When did Chinese cars become so popular?

The new energy vehicles on the road are basically Chinese brands, and the frequency is not low. About one out of every ten or twenty cars is a Chinese electric car. They are all MG, Nezha, BYD, and even Ora, which is almost extinct in China, are all doing well there.

Looking at the data again, Thailand's auto sales in 2023 will be about 780,000 units. Chinese brands account for about 11%. In the field of new energy, it is even more exaggerated.Of the 76,300 new energy vehicles sold in 2023, 80% were Chinese brands.

No wonder almost all new energy vehicles in Thailand are Chinese cars. It seems that Chinese brands are almost monopolizing the new energy market in Thailand. In addition, in 2023, new energy in Thailand increased by 634% year-on-year. According to this growth momentum, it is estimated that the penetration rate of new energy in Thailand will be stable at more than 20% this year.

In just one year, Chinese cars were able to carve a hole in Thailand, which was full of Japanese cars. It was really crazy.

The reason, first of all, is the old-fashioned configuration issue. The advantages of trams are too obvious.

Take the most common Toyota Altis (Thai Corolla) in Thailand for example, the lowest configuration of this car costs 879,000 baht (about 175,000 yuan).

Not to mention the high price, the configuration is still the classic halogen headlights, manually folding rearview mirrors, manually adjustable fabric seats, mechanical handbrake... There is no Auto Hold, central control screen, reversing image, or makeup mirror...

On the other hand, the BYD ATTO 3 (899,900 baht), which is similar in price, is 20,000 baht more expensive. It has leather-wrapped interior, LED headlights, electric folding mirrors, 360-degree reverse camera, and all other features. Not to mention the rotating center console that we are accustomed to, which is simply Zenith technology for Thais.

BYD ATTO 3 taken in Bangkok

In addition, traffic in Thailand is extremely congested, and Thai people are also suffering from the similar oil prices as us (91# oil is about RMB 8). However, the tram has air conditioning on and there is no psychological burden. It would be unreasonable if it didn't sell well.

As for why an SUV like BYD ATTO 3 can be priced the same as an entry-level sedan, we have to mention the second reason -The Thai government is taking sides.

As the largest automobile producer in Southeast Asia, Thailand's automobile industry is the first pillar of industry, accounting for 12% of Thailand's GDP. 10% of the country's labor force is engaged in automobile-related industries. World-class suppliers such as Aisin, Denso, Bosch, and ZF all have their own factories in Thailand. Thailand is also known as the "Detroit of the East".

But you can tell by the numerous Japanese cars on their roads.Thailand's automotive industry chain components are basically supplied to Japanese cars. The two are highly bound together and will prosper and suffer together.

This is the cause of the incident. In the past two years, new energy has emerged. Indonesia, which is below, has lithium mines and is preparing to start mining. Vietnam, which is next to it, has its own brand VinFast that cooperates with the Chinese supply chain. All of them are busy trying to keep up with the trend of new energy.

On the other hand, the Japanese criticize electric vehicles every day, saying that pure electric vehicles are unreliable and hydrogen energy is "superior", but they have not taken any action yet.

There is no other way. The opportunity for industrial upgrading is right in front of us. If you don’t do it, I will ask someone else to do it.

First, there was tax exemption. Since 2018, the Thai government has implemented a zero tariff policy on electric vehicles imported from China, opening the country's doors to directly introduce China's new energy.

In addition to tariffs, other taxes have also been reduced simultaneously. The consumption tax on new energy vehicles has been reduced from 8% to 2%, and road tax has also been reduced by 80%.

This is not enough. There are also "hundred billion subsidies" on the consumer side. Thai consumers will now receive a subsidy of 100,000 baht (about 20,000 RMB) when buying new energy vehicles, and companies that buy new energy vehicles can also be exempted from taxes and fees of twice the selling price.

have to say,The Thai government spends money more lavishly than us. ATTO 3 is even cheaper than Altis. Who would still buy an old fuel car?

Thailand's tram sales surge in 23 years

Of course, there is no free lunch in the world. All of the above subsidy policies require Chinese car companies to build factories in Thailand 25 years ago before they can enjoy the benefits. That’s why we see brands such as Great Wall, BYD, Nezha, Aion, etc., all rushing to Thailand to build factories.

Moreover, according to Thailand’s “3030” plan (electric vehicles will account for 30% of the total by 2030), after everyone’s factories are built and localization is achieved, Thailand’s new energy industry chain will be established and subsidies will gradually decline.

However, Brother Neck is not too worried about whether China's new energy can survive after the subsidies are gone.

Rather than worrying about not being competitive, we should worry about being too competitive and destroying other people's market share. . .

Take BYD for example. Its factory in Thailand was recently built. After localized production, the price of the car was directly reduced to 599,900 baht (original price was 799,900 baht, a reduction of about 40,000 RMB).

This traditional art of backstabbing old car owners may not be common in China, but Thai consumers have never seen such a scene. Some directly stopped paying their loans, some complained, and it was so chaotic.The Prime Minister of Thailand directly reminded Wang Chuanfu to properly protect the rights of Thai consumers.。。。

This cultural difference is really interesting (sent to BYD owners in our company to have a look).

But overall, although the Thai market is small with a population of about 700,000, it has a subsidy policy similar to that of my country, a trade model that focuses on exports, and a high willingness to consume local cars. Compared with the less stable European and Latin American markets, Thailand is really the most suitable "low-difficulty copy" for Chinese car companies to go overseas.

I wonder what it will be like next time I go to Thailand? Is it possible to see the explosively modified new energy vehicles? I am looking forward to it.