The company, which was virtually unknown in Thailand until last year, sold 105,563 units globally in 2021.

Market leader BYD Co sold over 3 million units.

Legacy automakers like Toyota and Nissan lack the range and affordability of Chinese EVs, with BYD's cheapest EV starting at around US$10,000.

Thai automobile market: Japanese carmakers, including Toyota and Isuzu, are losing market share to Chinese brands like Hozon.

In 2021, Japanese automakers' share dropped below 80% for the first time in years.

Hozon, which produces electric vehicles (EVs), plans to double production at its Thai factory, capable of making 20,000 Netas a year.

With approximately 800,000 vehicle sales annually, this is a significant increase.

EV sales in Thailand grew from less than 10,000 to about 76,000 in 2021.

Chinese brands now account for 10% of the market, while Japanese legacy carmakers lost 8.2 percentage points.

Thailand, the largest auto manufacturing hub in Southeast Asia, is experiencing a shift in the automobile industry with the rise of Chinese automakers.

The region's new vehicle sales and registrations increased by 18% to 3.27 million units in 2022, making ASEAN one of the world's biggest automobile markets.

Japanese brands have long dominated this market, but Chinese automakers like BYD and Great Wall Motor are setting up factories in Thailand to tap into local labor and expertise.

Additionally, China has surpassed Japan as the world's top car exporter, exporting record numbers of new-energy vehicles to Thailand and other countries.

This trend could be a sign of what's to come in Indonesia and other Southeast Asian countries where Japanese brands have been dominant.

Takeshi Miyao, an analyst at Carnorama, warns Japanese carmakers against complacency as other countries, including China and South Korea, offer incentives to boost EV growth.

Indonesia, the largest market in Southeast Asia, is seeing competition between Chinese and South Korean firms, resulting in market share losses for Isuzu and Suzuki Motor Corp. Although EVs represented only 1% of passenger vehicle sales in Southeast Asia in 2020, they are expected to reach 14% by 2030 and 64% by 2040.

Xpeng Inc, with Alibaba Group Holding as a shareholder, plans to enter the Southeast Asian market, starting deliveries in Thailand, Singapore, and Malaysia from the third quarter of 2023.

In February 2022, the Thai government announced initiatives to promote the growth of Electric Vehicles (EVs) in Thailand, including subsidies of up to 150,000 baht (US$4,085) per EV and related tax breaks.

This is significant as the average monthly Thai household income was 27,352 baht in 2021.

Southeast Asia, including Thailand, is a strategic focus for Chinese EV companies like Xpeng, which sees the region as an opportunity to expand outside of China.

The pickup truck segment, which accounts for about 40% of new car sales in Thailand, is critical as it is dominated by Japanese manufacturers Toyota and Isuzu.

Chinese brands are now expanding their lineups to include pickups, posing a challenge to these established players.

Great Wall Motor, a Chinese automaker, introduced a new hybrid pickup truck at the Bangkok motor show, targeting customers like Kamphon Thamwapee, a sugar cane farmer in Northeast Thailand who has ordered six Toyota pickups.

The hybrid pickup aims to offer better fuel efficiency for cost-conscious customers.

Michael Chong, general manager of Great Wall Motor Thailand, mentioned that a commercial electric pickup is also under consideration.

In response, Toyota plans to release an EV Hilux pickup truck in Thailand by the end of 2025, and Isuzu unveiled its first electric pickup, the D-Max, at the show.

Isuzu's Managing Executive Officer, Satoshi Yamaguchi, announced that Isuzu's electric vehicle (EV) will be rolled out in Norway, but the company is still evaluating the added value for customers in other markets before making a decision to launch there.