EV Photo:VCG

Chinese companies have taken an increasingly leading role in the development and manufacturing of electric vehicles (EVs) and the related supply chains in recent years, and cooperation between China and Thailand would benefit both, a Thai official told the Global Times in an exclusive interview on Thursday.

"By bringing in EV technology, the Chinese manufacturers are helping Thailand to stay ahead of the pack in the auto sector, while Thailand brings to the table its well-established supply chain, its strong domestic market, its strategic location to serve as a base to make right-hand drive cars, and its access to the wider ASEAN and global markets," Narit Therdsteerasukdi, secretary-general of Thailand Board of Investment, told the Global Times via email.

Therdsteerasukdi said that the Thai government offers comprehensive packages of both tax and non-tax incentives to attract foreign companies' investment in targeted sectors including the whole EV supply chain.

In addition to Thailand, some other countries in Southeast Asia including Indonesia and Malaysia have also vigorously supported the vehicle electrification transformation over recent years, attracting Chinese EV companies to build factories and conduct procurement and sales locally.

For example, China-based carmaker BYD opened a Thailand plant recently. With an annual production capacity of 150,000 vehicles, the operation covers stamping, painting, welding, final assembly and the production of components.

As a world-leading automobile manufacturer and a pioneer in China's EV industry, BYD's investment in Thailand, along with its advanced production technology, will drive the development of the EV industry in Thailand and across the ASEAN region, the Xinhua News Agency reported, citing Thailand's Minister of Industry Pimphattra Wichaikul.

"Southeast Asian countries including Thailand have great demand for EVs amid some energy shortages. More importantly, these countries can share the dividends brought about by China's development of new quality productive forces," Zhuang Guotu, head of Xiamen University's Southeast Asian Studies Center, told the Global Times on Thursday.

He said that unreasonable suppression by the US and Europe has prompted some Chinese carmakers to set up factories overseas. Some Western countries don't welcome Chinese electric cars, but China-made EVs are in great demand in other markets. This will also thwart the West's plot to suppress China's NEV sector, according to Zhuang.

Zhuang said Chinese EV manufacturers have created jobs while contributing tax revenue for local governments. Their mature technologies and sound industrial and supply chains will help these countries transform the EV industry and increase their competitiveness, he said.

Amid the world's green transition, there is no production "overcapacity" in China's new-energy sector, as demand will far outweigh supply, Zhuang said. He said some Western countries, led by the US in hyping so-called overcapacity in China's EV sector, aim to use non-market power to crack down on industries where China has advantages.

According to a study by the International Energy Agency, global sales of new-energy vehicles will reach 45 million in 2030 and be close to 65 million in 2035, up from about 14 million in 2023.

Step by step, we could support the Belt and Road Initiative (BRI) partner countries to achieve industrialization following the development path of China in the past 20 years, skipping right over fossil energy and transitioning directly into new energy, said Ju Jiandong, chair professor at the PBC School of Finance in Tsinghua University.

Most BRI partner countries face electricity shortages. In many Latin American and African countries, most people can't afford to take hot showers. Our new-energy innovations can make it possible for them to take showers with solar water heaters, and we can help them install solar panels. There is a huge market demand, while at the same time, climate change itself is urgently needed to be resolved for BRI partner countries. In this regard, there is a huge potential to develop the market, according to Ju.