RAYONG, Thailand—Ever since Nissan Motors started building cars in Thailand in the early 1960s, Japanese companies have been a driving force in the country’s rise as an auto manufacturing powerhouse. Now, Chinese competitors are moving in to bring it into the electric age. On the outskirts of Thailand’s carmaking capital, Rayong, not far from the industrial zones home to Japanese auto plants, China’s largest electric-vehicle maker, BYD, is developing what industry experts believe will be Thailand’s biggest car plant.
Half a dozen other Chinese companies already build EVs here or have committed to, with an eye on domestic demand and the country’s status as an export hub thanks to regional free-trade pacts. China’s assertive entry into Thailand shows its ambition to dominate the global EV market and edge out traditional giants like Japan. As their offerings become more widely available in many parts of the world, major Chinese carmakers are seeking to set up production lines outside China to expand their reach, boost sales and take advantage of incentives being rolled out in various capitals.
That is a challenge for Japan, a juggernaut of the conventional car industry. Chinese rivals are entering the race as relative upstarts, willing to throw their weight behind new products. Japanese carmakers, by contrast, are largely attempting a slower transition that will both protect their existing revenue streams while allowing room for change.
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