BYD's Thai plant builds 100,000th car as EV tax rules shift
The plant has built about 30,000 cars in ten months, a fraction of its 150,000 design capacity, just as the finance ministry plans tiered excise rates.
BYD's factory in Rayong built its 100,000th car on 21 September 2026, a white Atto 3, about 26 months after the line started, CnEVPost reported. The milestone lands in the same month Thailand agreed in principle to rewrite the tax rules that brought Chinese carmakers to the country.
What the Rayong plant has built
The plant sits in the WHA Industrial Estate and is BYD's first wholly owned passenger-car factory outside China. It opened in July 2024 with a design capacity of 150,000 vehicles a year. The 10,000th car came in November 2024 and the 70,000th in November 2025. The next 30,000 took ten months.
That is about 3,000 cars a month, or roughly 36,000 a year at the recent pace, against a design of 150,000. That arithmetic is ours, drawn from CnEVPost's figures.
BYD says Thai nationals are 95% of the workforce and about half of its purchasing is local. Five models carry Made in Thailand certification, and the plant builds the Dolphin, Atto 3, Seal 5 DM-i, Sealion 5 DM-i and Sealion 6 DM-i. The company counts more than 5,000 jobs created.
Other Chinese plants
Changan opened its first overseas EV factory in Rayong on 16 May 2025, a roughly 10 billion baht investment with initial capacity of 100,000 units a year and a planned expansion to 200,000. XPeng is still weighing a Thai plant, and The Nation reported in August that its decision depends on final tax rates and incentives.
What EV 3.5 requires
EV 3.5 is the successor to EV 3.0. KPMG Thailand's summary of the scheme says makers must assemble two vehicles locally for every imported unit in 2026, and three for every imported unit in 2027.
Buyer subsidies are smaller than before. KPMG cited up to 100,000 baht a car in its August 2025 outlook, while The Nation put EV 3.5 at up to 50,000 baht in August 2026, against up to 150,000 baht under EV 3.0, which has ended. We use the lower and more recent figure. The Nation also gives the current excise rates: 10% on imported EVs and 2% on locally assembled ones.
The Board of Investment changed the terms in November 2025:
- Registration for EV 3 cars moved from December 2025 to January 2026, and for EV 3.5 from December 2027 to January 2028.
- Each EV built for export counts as 1.5 units toward local obligations, up from one.
- Subsidy payments are held back if a maker's local output falls short of its commitment.
- From 1 January 2026 the value of imported battery cells that can count as local content is capped at 10% of the car's factory price.
What replaces it
The EV Board met on 10 September 2026 and agreed in principle to restructure car excise tax, Techsauce reported. Thansettakij reported on 8 October that the cabinet has acknowledged the principle.
The structure has tiers. Imports from makers with no Thai factory pay the most. Makers that do build in Thailand may import limited volumes, with the cap tied to the economic value they create in Thailand. Cars built locally with higher Thai content pay the least.
No rates have been published. The Excise Department must finalise them and take them back to the cabinet. Industry groups have asked for more: in May, a coalition of 10 associations asked for an excise rate of at least 32% on imported EVs.
For a parts supplier or a plant manager, the number to watch is the Excise Department's rate table. Until it appears, Chinese makers cannot price the choice between filling Rayong and importing.
FAQ
What is EV 3.5?
It is the successor to EV 3.0. It pairs smaller buyer subsidies and a low excise rate with an obligation to build cars in Thailand, according to KPMG Thailand and The Nation.
How are exports counted against the local production obligation?
Each EV produced for export counts as 1.5 units under both EV 3 and EV 3.5, according to the Board of Investment.
Have the new excise rates been set?
No. The EV Board agreed the structure in principle on 10 September 2026, and the cabinet acknowledged it. The Excise Department still has to finalise the rates.
Sources
- CnEVPost: BYD's Thailand plant tops 100,000 vehicles
- CnEVPost: Changan Thailand plant goes into operation
- Board of Investment: EV Board approves policy refresh
- KPMG Thailand: Outlook for Thailand's electric vehicle industry
- The Nation via Asia News Network: Chinese and Japanese carmakers adjust strategies as Thailand targets new excise rules
- The Nation via Asia News Network: Thai auto groups seek 32% tax on imported EVs
- Techsauce: EV Board agrees new tax direction
- Thansettakij: Cabinet acknowledges EV excise restructuring
