Core Viewpoint - Chinese automotive companies are expanding their supply chains in Thailand, aiming to capture demand in the Asian market, particularly in the context of increasing challenges faced by Chinese automakers due to tariffs and trade tensions with the US and Europe [1][2][3]. Group 1: Investment and Expansion - Since the 1960s, Japanese automakers have established production bases in Thailand, with around 1,400 related suppliers [1][4]. - Chinese companies, including BYD and Great Wall Motors, are entering Thailand, with over 20 brands localizing EV production around the Eastern Economic Corridor (EEC) [2]. - Sunwoda plans to invest over $1 billion to establish an EV lithium battery production base in Thailand, with production expected to start by 2025 [1][2]. Group 2: Supply Chain Dynamics - The number of automotive-related local entities established by Chinese companies in Thailand has reached 165 by March 2025, a 3.4 times increase compared to the end of 2017 [2]. - Chinese suppliers are offering parts at prices nearly 30% lower than those from Japanese companies, which may lead to a shift in sourcing by local manufacturers [4]. - The presence of Chinese suppliers is raising concerns among local businesses about potential disruptions to existing supply chains [3][4]. Group 3: Market Competition - Japanese automakers, including Toyota and Honda, maintain over 70% market share in Thailand, but this is declining due to the aggressive expansion of Chinese companies [4]. - The competitive landscape is shifting, with local executives noting that reliance on Chinese suppliers for EV components could threaten the business of existing Japanese suppliers in Thailand [4].