China’s BYD is expanding its reach into Southeast Asia

The factory’s opening comes on the same day the European Union is expected to begin imposing higher tariffs on Chinese-made EVs due to concerns about competition from other low-cost countries.

In the US, the Biden administration also raised tariffs on Chinese EVs to 100% from the current 25%. The US currently imports very few Chinese cars, but like the European Commission, it is concerned that the subsidies are hurting domestic companies and costing jobs.

The new factory in Rayong, south of Bangkok, was built in just 16 months and has the capacity to produce 150,000 cars a year. Makes several BYD models as well as batteries and transmissions. Its opening on Thursday was marked with great fanfare and included the launch of the BYD Dolphin, a compact hatchback, at a charity foundation under the patronage of the Thai royal family.

That car was the 8 millionth car built by BYD, the company said.

Thailand aims for 30% of all cars made in the country to be electric by 2030. One in three EVs sold in Thailand is made by BYD, although most cars on the road still run on gas or diesel.

BYD, which stands for “Build Your Dreams,” sold 3 million vehicles last year and exports more than tripled to 243,000. In the first half of this year, the company sold 1.6 million EVs.

It sold 30,650 EVs in Thailand last year and is planning its new factory to make the Dolphin, Atto 3, Seal and Sealion 6 EV models.

BYD says the new factory is expected to create 10,000 jobs. Besides Thailand and China, BYD has factories or builds in Brazil, Hungary and Uzbekistan.

According to BYD, the Dolphin can run 490 kilometers (about 300 miles) on a single charge. During the recent auto show in Bangkok, the models on display were priced at 859,999 baht ($23,700), although reports say BYD will offer steep discounts in Thailand for cars made at the new factory.