Japanese automakers, who have long dominated the auto industry in Thailand, are now facing stiff competition from Chinese electric vehicle companies. For decades, brands like Mazda, Nissan, and Suzuki held a stronghold in the Thai market, with Japanese automakers accounting for about 75 percent of vehicle sales in the country. However, the rise of Chinese manufacturers like BYD, Great Wall Motor, and SAIC Motor, offering electric vehicles at affordable prices, has started to challenge Japan's market dominance.

Thailand's Prime Minister, Srettha Thavisin, recently delivered a message to Japanese automakers during a visit to Japan, urging them to invest in electric vehicles quickly or risk losing out to China. The reluctance of Japanese companies to fully embrace electric vehicles, popular among Thai consumers, has resulted in a decline in sales. Data compiled by MarkLines showed that in the past year, new car sales for Japanese automakers collectively dropped by 25 percent while overall sales fell by 9 percent in Thailand.

To combat this trend, Japanese automakers like Toyota, Honda, Isuzu, and Mitsubishi have pledged to invest $4.3 billion over five years to convert their Thai factories to produce electric vehicles. While Honda has already begun manufacturing electric vehicles in Thailand, other companies are following suit. Mitsubishi, for instance, introduced a hybrid version of its Xpander multipurpose vehicle in Thailand, which has garnered strong interest from customers.

Despite these efforts, Chinese electric vehicle companies like GAC Aion are proving to be formidable competitors. GAC Aion, the E.V. arm of the state-owned Guangzhou Automobile Group, has set up a manufacturing and sales business in Thailand, targeting segments traditionally dominated by Japanese automakers. By offering fully electric sedans dedicated to Thailand's ride-hailing and taxi market at competitive prices, Aion has gained traction, having already sold several thousand units for about $25,000 each with a nine-year warranty.

The rivalry between Japanese and Chinese automakers is intensifying in Thailand, with each side vying for a larger share of the market. As Japanese manufacturers focus on transitioning to electric vehicles to regain lost ground, Chinese companies are making significant inroads by offering innovative, cost-effective electric vehicles tailored to local demands. This shift in the Thai auto industry underscores the evolving competition between Japanese and Chinese automakers for dominance in the Southeast Asian market.