BYD denies using Thai EV plant to evade US tariffs

BYD rebuffed suggestions that its Rayong, Thailand, factory was being used to evade tariffs after the Office of the United States Trade Representative opened a Section 301 probe into structural excess capacity.

The probe examines structural excess capacity across China, the EU, and ASEAN, and is also scrutinising shifts in final assembly to Southeast Asia.

BYD said it opened a 600-rai Rayong plant in July 2024 to serve Thai demand and nearby markets and that the site exported 10,250 units to Europe, ASEAN, and Oceania in 2025 and none to the United States.

Liu Xueliang, general manager of Asia-Pacific Auto Sales, told Thai outlet Thansettakij that BYD has not yet entered the US market and that US protectionist measures could redirect resources towards the Asia Pacific.

US officials have voiced concerns that Thailand could be used as a final assembly hub for surplus Chinese EVs bound for global markets, including the United States.

🔗 Source: Nation Thailand

🧠 Food for thought

Implications, context, and why it matters.

BYD’s Thailand site takes on tariffs and trade limits

The Rayong, Thailand, facility can build 150,000 vehicles a year, and BYD expects total output to reach 70,000 cars by November 2025 1.
Production climbed from 10,000 to 70,000 vehicles in one year, which signals tight execution across manufacturing and supply chains 2.
BYD says the site is not aimed at the US, yet it can cut reliance on shipping from China into Europe and sidestep the EU’s extra 20.7% tariff on top of the 10% customs duty 1.
The first export shipment went to Europe, including Germany, Belgium, and the Netherlands 3.

BYD’s approach offers a template for overseas production

Analysts see “local manufacturing, global distribution” in Thailand as a model other Chinese automakers can copy as they expand abroad 2.
Localization runs deep, with more than 92% of the workforce made up of Thai employees, and exports can move on BYD’s own roll-on/roll-off vessels (cargo ships built to carry vehicles) 4.
Thailand is pushing this shift with incentives as it tries to become a global EV production hub, and BYD’s momentum also shows up in Singapore where it led car sales for nine straight months and nearly doubled Toyota’s sales 3 5.