Core Viewpoint - The article highlights a significant shift in the Southeast Asian automotive supply chain, where Toyota plans to source components from Chinese manufacturers to enhance cost competitiveness, marking a potential turning point for Japanese automakers in the region [2][9]. Group 1: Market Dynamics - Chinese auto parts manufacturers have a cost advantage of 20-30% compared to Japanese firms, leading to potential exits or downsizing of some Japanese companies [11]. - Toyota's market share in Thailand has seen a decline, with Japanese vehicles dropping to 71% from 90%, while Chinese vehicles, led by BYD, have increased their share to 16% [2]. Group 2: Strategic Moves by Toyota - Toyota has begun officially sourcing parts from Chinese companies in Thailand, including a partnership with Wuhu Yuefei for sound-absorbing materials [5]. - The company is encouraging Japanese parts suppliers to adopt Chinese products to reduce costs, indicating a strategic shift towards more competitive pricing [8]. Group 3: Future Plans - Toyota aims to launch a new vehicle in Southeast Asia by 2028, utilizing a Multi-Pathway Platform that incorporates Chinese components, targeting a 30% reduction in costs [9]. - The company plans to maximize the use of Chinese parts in its electric vehicles, similar to its successful bZ3X model launched in China [8]. Group 4: Industry Context - The automotive parts industry in Thailand consists of approximately 3,100 manufacturers, with Japanese firms accounting for about 1,400, while Chinese firms have increased from 47 to 190 since 2017 [11][13]. - The entry of major Chinese automakers into Southeast Asia, supported by free trade agreements, is intensifying competition and prompting Japanese firms to reconsider their sourcing strategies [13].