The European Union’s call to investigate Beijing’s use of state subsidies in the production of Chinese electric vehicles, along with the possibility of tariffs on EV exports to Europe, comes as Chinese carmakers diversify their manufacturing of EVs into Southeast Asia.
Chief among Chinese EV makers’ prospective hubs is Thailand. The country has by far the largest automobile sector within the Association of Southeast Asian Nations, and is luring Chinese EV carmakers under an ambitious government programme titled the “30/30 policy”. According to this three-stage programme, by 2030, about a third of all vehicles produced in Thailand will be EVs.
- Thailand is quickly becoming Southeast Asia’s EV manufacturing hub as Chinese carmakers escaping geopolitical tensions set up shop in the friendly state
- The EU is unlikely to extend its probe to Thailand and risk alienating ties with a key ASEAN dialogue partner