As new energy vehicles become the prevailing trend, Chinese automakers are increasingly challenging Japanese cars in overseas markets, with the Thai auto market serving as a prime example. Recently, a Japanese media outlet published an article expressing concern that Chinese automakers are forging closer relationships with Thai suppliers, diminishing Japan's long-standing advantages.
According to the Japanese media, in Thailand-a major automobile production hub in Southeast Asia-the relationship between local parts manufacturers and Chinese automakers is strengthening. Large companies such as AAPICO Hitech have started supplying major components to BYD. Chinese firms are expanding their presence in the supply chain by establishing local factories. Consequently, Japanese suppliers may need to adjust their business strategies.
AAPICO reportedly did not disclose the specific models equipped with its parts, but it primarily supplies body components. Many models produced by BYD in Thailand, such as the Dolphin, are believed to use AAPICO parts. Additionally, AAPICO plans to expand its parts supply to other major Chinese automakers. Thailand's largest local auto parts company, Peak Group, has also begun collaborating with BYD and other Chinese automakers, signing contracts to supply components like stamped parts.
The Japanese media analysis suggests that for Thai parts manufacturers like AAPICO, the local production expansion by Chinese automakers represents a new business opportunity. While maintaining their relationships with Japanese automakers, local manufacturers are expected to continue expanding their business with Chinese automakers, leveraging their price competitiveness. A representative from a Japanese supplier in Thailand noted, "We want to expand business with large Chinese automakers, but due to lower delivery prices and faster development speeds, Japanese suppliers have struggled to compete."
Since the 1960s, Japanese automakers like Toyota have established a strong presence in Thailand, maintaining a significant market share. In 2023, Japanese cars accounted for 78% of new car sales in Thailand, while Chinese automakers held an 11% share. Some experts believe that China's market share could rise to nearly 30% in the next five years. Japanese companies primarily rely on fuel vehicles to maintain their market position, while Chinese companies are rapidly catching up with advancements in electrification technologies, including EVs.