China’s rapidly expanding electric vehicle (EV) industry is putting unprecedented pressure on Thailand’s ambitions to become a regional manufacturing hub. With Chinese automakers aggressively scaling production and leveraging cost advantages, Thai manufacturers face formidable challenges in securing market share both domestically and within the ASEAN bloc. The influx of affordable and technologically advanced Chinese EV models threatens to overshadow Thailand’s burgeoning local EV brands, undermining years of government incentives aimed at boosting local production capacity.

Industry analysts highlight several critical factors contributing to this competitive imbalance:

  • Economies of scale: Chinese firms benefit from extensive supply chains and…