BYD Set to Dominate NEV Market in Southeast Asia, Starting with Thailand – CleanTechnica

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Spreading a manufacturing base all over the region

BYD has aggressively expanded its footprint across the Southeast Asian (ASEAN) region, strategically establishing distributorships in several key countries. This expansion is often facilitated through partnerships with prominent local automotive or business conglomerates, a tactic that mirrors the successful market entry strategies of Japanese automakers in the past.

Thailand could be the ASEAN headquarters for this expansion.

BYD sold some 27,000 units in the country last year, while Tesla only sold 4,121, says a report from Car News China. Total NEV registrations last year were 70,137 — which, although lower by 8.1% year on year, is 14.0% of total market share. BYD’s growth is higher than the market’s growth.

On July 4, 2024, BYD Thailand inaugurated its plant in a special economic zone in Rayong. The launch coincided with the production of its 8 millionth new energy vehicle. BYD completed its Thailand plant in just 16 months — with strong support from the Thai government. Annual production is estimated to be 150,000 vehicles, with stamping, painting, welding, and final assembly all done there. It has so far generated an estimated 10,000 jobs both in the plant and in distributors throughout the country.

The rest of Southeast Asia

The most challenging market in the region for EVs is Malaysia. First, because fuel is so cheap. In the US, the average price for regular gasoline is around $3.265 per gallon (CleanTechnica measured this by averaging available pump price information over 38 states), which is approximately $0.86 USD per liter. In Malaysia, it costs only $0.41 per liter, or $1.54 per US gallon. Second, Malaysia’s national car, Proton, is in owned 49.9% by Geely and receives a lot of subsidies.

Beyond Auto, a subsidiary of the well-established Sime Motors (Sime Darby) group in Malaysia serves as the exclusive distributor for BYD vehicles. This strong local partnership is replicated in Singapore, where Vantage Automotive Limited (VAL), also part of the Sime Darby Motors group, handles distribution, contributing to BYD’s rapid ascent to become the No. 1 electric vehicle brand in the city-state.

Indonesia, the largest car market in Southeast Asia, is as challenging because of cheap fuel ($0.61 per liter) and the proliferation of scooters and motorcycles — estimated at 132 million to 150 million — about half of the country’s population. BYD’s local partner is the Arista Group, handling both dealership and distribution network. The Atto 3, Seal, and Dolphin were the first models sold in the archipelago in January of last year. The M6 was introduced in July at the 2024 Gaikindo Indonesia International Auto Show, becoming the top-selling EV for the brand.

BYD is now building a $1 billion factory in Subang, West Java, Indonesia, which is expected to be completed by the end of the year. The second ASEAN production plant, after the one in Thailand, it is intended to serve both the local market and export to other countries.

In Vietnam, BYD has opted for a more direct approach, with BYD Auto Vietnam, a wholly-owned subsidiary of BYD China, managing its distribution. Additionally, BYD has established a presence in smaller but growing markets: Maju Motors Sdn Bhd is the sole distributor in Brunei Darussalam, while in Laos, BYD works with multiple distributors, including MOK Co., Ltd., Lao Thani Company, and Auto Asia Company.

For Cambodia, BYD officially entered the market in 2020 with its own passenger car sales center in Phnom Penh. Just this April, it broke ground on a new assembly plant in the Sihanoukville Special Economic Zone. The Phnom Phen Post said that the $32-million plant, which sits on a 12-hectare site, is expected to start production in November 2025. CleanTechnica found out from BYD sources that the plant is advancing faster than schedule and has a planned annual capacity of 10,000 vehicles. Phase one of assembly will involve completely knocked-down (CKD) kits imported from China, including its battery electric vehicles and plug-in hybrid electric vehicles, which may mean its standards — the Atto 3, Seal and Dolphin.

Myanmar’s EV market is evolving. Last March, Myanmar Now reported that BYD secured a go-signal from the military junta to assemble its cars within Myanmar using the ASEAN-standard “semi-knocked down” (SKD) system. This means the main components of the vehicle (body, drivetrain, batteries) will be imported from China, and other parts (mostly tires, interior trims and possibly plastic parts) will be locally made or sourced. The military-owned conglomerate Myanma Economic Holdings Limited (MEHL) already has BYD vehicles in its compound in the city of Bago, some ~90 kilometers (~57 miles) northeast of Myanmar’s capital, Yangon. BYD told CleanTechnica that Prime Auto, EV Power, and Essential Motors are authorized distributors.

The Philippines is a rapidly growing market for BYD where it has sold over 10,000 units. A combination of value (not just affordable) pricing, a product in every important segment of the market, the best available range, and excellent after-sales servicing are its weapons of domination. Note that the strategy did not include building charging stations. BYD has left that to market forces and investors. Ayala Corporation, mother company of AC Mobility, which is responsible for BYD Philippines, Inc., also owns huge malls, condominiums, and hotels in major cities across the country where it has built charging stations, not only for BYD vehicles but for any car with plug-in compatibility. Finally, though BYD has never mentioned any plans to build a plant in the country, Ayala Corp. also has many industrial assets. Significant among these are the old Honda assembly plant, ripe for conversion into an EV assembly factory.

Beyond Southeast Asia

BYD officially entered the passenger vehicle market in Japan in January 2023 with the launch of the Atto 3. It has since expanded its lineup to include the Dolphin, Seal, and Sealion 07. BYD has been aggressively expanding its retail network in Japan, with plans to reach 100 outlets by the end of 2025 from over 60 locations currently operating in 36 of Japan’s 47 prefectures. Despite a declining overall EV market in Japan in 2024, BYD saw its sales increase, even outselling Toyota in the EV segment in 2024, albeit by a slim margin. BYD is also reportedly developing an electric kei car specifically for the Japanese market, expected in 2026.

Japan literally rewarded BYD with the prestigious “Japan EV of the Year” award for two consecutive years. In the 2023 Japan EV of the Year Grand Prix, the award went to the BYD Dolphin, with the BYD Atto 3 also achieving a commendable third-place finish. Building on this success, the BYD Seal earned the Grand Prix title in the 2024 Japan EV of the Year awards. Then the BYD Seal received additional recognition by being named one of the “Top Ten Best Models” for the overall 2024–2025 Japan Car of the Year awards — the first time a Chinese brand achieved such an honor in these mainstream Japanese automotive awards.

BYD made its official entry into the South Korean passenger vehicle market on January 16, 2025, with the launch of the Atto 3. While BYD has been present in South Korea since 2016 selling commercial vehicles, its passenger car venture is recent. Despite initial delays in subsidy certification, the Atto 3 has seen rapid success, with BYD completing deliveries of 1,000 Atto 3 EVs in less than two months and the model even surpassing the Tesla Model Y as the best-selling imported EV in South Korea in April 2025. BYD plans to double its sales network in South Korea to 30 by the end of 2025 and intends to introduce other models like the Seal and Dolphin later this year. There are no plans to build a factory yet in the home of K-Pop.

Competing with Toyota’s Hybrid Legacy

While BYD indisputably dominates the burgeoning NEV market, particularly in the PHEV and BEV categories, it faces a significant competitive landscape with Toyota’s long-established reputation and recently widely accepted hybrid electric vehicle (HEV) offerings.

Toyota has cultivated a strong reputation for reliability and efficiency with its hybrid technology, accumulating a substantial base of hybrid vehicle owners over many years. Toyota offers a comprehensive range of hybrid models, including the Corolla Cross Hybrid, Yaris Cross Hybrid, Innova Zenix Hybrid, Camry Hybrid, Corolla Altis Hybrid, RAV4 Hybrid, and Alphard Hybrid, all available in the ASEAN region.

The competition between BYD and Toyota in the electrified vehicle segment is a fascinating dynamic. BYD is rapidly capturing the future-forward NEV market with its diverse range of BEVs and sophisticated PHEVs.

On one hand, BYD’s aggressive pricing strategy and advanced battery technology are resonating with buyers eager for greener and smarter mobility. Toyota, on the other hand, maintains its traditional stronghold with a loyal customer base and a proven track record of reliable HEVs, which offer a softer transition into electrified driving without the need for external charging. While there isn’t a direct head-to-head model for every Toyota hybrid, the BYD Sealion 5 DM-i (a compact PHEV SUV) directly competes with vehicles like the Toyota Corolla Cross Hybrid and Yaris Cross Hybrid. Similarly, the BYD Han EV (an electric sedan) can be seen as a challenger to the Toyota Camry Hybrid (a hybrid sedan), albeit with different powertrains. BYD also has the eMAX 7 MPV, entering a segment where Toyota has its Innova Zenix Hybrid.

As BYD continues its robust expansion and introduces more compelling models in the region, it is sad to think that protectionist policies and a general misguided opinion about and mistrust of Chinese car brands will deny the US market the technology of BYD vehicles.