News about Thailand

Thailand, once dubbed the “Detroit of the East” thanks to Japanese automakers, now sees Chinese brands hold about 85% of its EV market, up from nearly zero four years ago. In 2024 and 2025, Subaru and Suzuki closed Thai plants and Nissan and Honda cut output, while some Thai parts suppliers to Japanese firms went bankrupt, threatening the jobs of about 700,000 workers. The government had offered tax cuts, subsidies and import access for EVs, and a China-ASEAN free trade deal let Chinese vehicles avoid customs duties. EVs now make up one-third of new car sales in the first seven months of 2026, with about two-thirds of those imported, mainly from China, while the government has just introduced a three-tier tax system based on local production to curb imports. Professor Ruth Banomyong of Thammasat University says Thailand has seen few benefits because core technology stays in China, and he and colleagues estimate 300,000 jobs could vanish within five years.