The 2025 annual sales rankings for the Thai automotive market reveal a significant shift in a competitive landscape that has defined Southeast Asia for decades. In the top ten sales chart, representing market dominance, five Chinese automakers—BYD, MG, Great Wall, Changan, and GAC—have successfully secured positions, claiming half of the spots. This breakthrough not only marks the best-ever sales performance for Chinese automotive brands in Thailand but also signifies a pivotal turning point in the intensifying competition between Chinese and Japanese automakers across Southeast Asia.
According to data released by the Federation of Thai Industries (FTI) Automotive Industry Club, Thailand's total vehicle sales in 2025 reached 621,100 units, a year-on-year increase of 8.5%, hitting a two-year high. Sales of electrified models accounted for 276,700 units, representing 45% of total sales. Within this segment, sales of pure electric vehicles surged by 80%, reaching 120,000 units. Notably, Chinese companies occupied five positions within the top ten automakers by sales in Thailand for 2025. Among them, BYD Company Limited secured fourth place with sales nearing 40,000 units, a 47.5% year-on-year increase. MG followed closely with sales of 27,000 units. Great Wall Motor, Changan Automobile, and GAC ranked 8th to 10th, with year-on-year growth rates of 145.2%, 75%, and 167.6%, respectively.
It is important to note that 2025 was the first full year for Chery's Omoda and JAECOO brands in the Thai market, and they experienced explosive sales growth. This propelled Chery's total sales in Thailand for the year to 12,353 units, a more than six-fold increase, placing it just outside the top ten sales ranking. Beyond the standout performance of the listed brands, the overall market penetration of Chinese brands achieved a significant leap forward. In 2025, sales of Chinese automobiles in Thailand surpassed the 100,000-unit mark for the first time, reaching 134,400 units, a substantial 81.4% year-on-year increase. Their market share rose by nearly 10 percentage points compared to the previous year, reaching 22.2%, second only to Japanese brands, which held a 68.4% share.
This data reflects the precise strategic positioning of Chinese brands in product targeting, technological pathways, and market strategies. Against the backdrop of new energy vehicles becoming a global trend, Chinese automakers, leveraging their first-mover advantage in electrification, have accurately aligned with Thailand's policy direction and consumer upgrade demands. Thailand's ongoing incentives for new energy vehicle development have created favorable conditions for Chinese brands. The strong sales of models like the BYD Atto 3, Denza D9, and Zeekr 009 have not only validated the competitiveness of Chinese NEV products but have also broken the monopoly of Japanese automakers in Thailand's traditional internal combustion engine market, achieving breakthroughs in premium segments.
Crucially, the growth of Chinese brands is not reliant solely on short-term policy benefits but is built on enhanced product strength and localization capabilities. Statistics show that by 2025, the total production capacity of Chinese automakers in Thailand had surged to 550,000 units from 180,000 units in 2023, with a localization rate exceeding 50% and local employees comprising up to 92% of the workforce. The transition from export trade to local manufacturing has not only reduced tariff costs and logistics risks but also improved the ability to respond quickly to market demands. For instance, BYD's factory in Thailand not only meets local demand but also exports to Europe, serving as a key node in the global layout of China's automotive industry chain.
Simultaneously, Chinese brands have been strengthening their channel development. Companies like Geely, Changan, and Chery are continuously improving their sales and service networks to enhance user experience, laying a solid foundation for the continued expansion of their market share. If 2025 was the "breakthrough year" for Chinese automakers in Thailand, 2026 is set to be the "year of deep cultivation." Chinese automakers are shifting from "scale expansion" to "quality improvement," aiming to further consolidate their market position and deepen their competitive advantages through three key strategies: full industrial chain localization, product portfolio upgrades, and ecosystem synergy.
Continuing to advance full industrial chain localization will be the core theme for Chinese automakers in Thailand for 2026. Thailand's new automotive excise tax policies and EV incentives are encouraging global automakers to localize production of core components in Thailand and increase localization rates. Furthermore, the move towards premium and diversified product portfolios is a key direction for Chinese automakers to enhance profitability. The breakthrough of Chinese brands in the premium electric MPV market in 2025 has highlighted the growth potential in high-value-added segments. In 2026, several Chinese automakers will continue to push product upgrades to cover more market segments.
Concurrently, the refinement of channels and service systems will be a crucial support for Chinese automakers to consolidate their market share. As market penetration increases, user demand for after-sales services is growing. In 2026, companies like Geely and Great Wall will continue to densify their sales networks, improve service response times, and establish localized after-sales teams and parts supply systems. Additionally, Chinese automakers are actively exploring diversified marketing models; for example, BYD has partnered with the food, beverage, and entertainment industries in Singapore to boost brand awareness through contextual marketing. The development of online sales channels and the upgrade of digital services will also be important means for Chinese automakers to enhance user experience and address market competition.
It is well known that Southeast Asia, represented by Thailand, has long been a traditional stronghold for Japanese automakers, historically dominated by brands like Toyota, Honda, and Nissan. Between 2010 and 2020, Japanese brands held market shares exceeding 80% in major Southeast Asian countries. In Thailand, Japanese brands peaked with a market share of up to 90%. However, with the strong rise of Chinese brands using new energy vehicles as their entry point, the traditional advantage of Japanese automakers in Southeast Asia is being eroded, and their market share is continuously declining.
The competitive landscape between Chinese and Japanese automakers has now entered an intense phase of deep strategic contest. In the 2025 Thai market, apart from Toyota, which achieved single-digit growth, other Japanese brands experienced sales declines, forming a sharp contrast with the widespread significant growth of Chinese brands. In the Malaysian market, Chinese brand models occupied seven spots among the top ten best-selling pure electric vehicles in 2025, with BYD having six models on the list. In Indonesia, the number of Chinese brands reached 16, surpassing the 12 Japanese brands, with BYD's sales tripling year-on-year.
As Southeast Asian countries accelerate the development of their new energy vehicle industries, the first-mover advantage of Chinese brands in electrification is expected to expand further, while the存量 advantage of Japanese brands in the internal combustion engine market will gradually weaken. Of course, Japanese brands are preparing countermeasures. Companies like Toyota and Honda have increased their electrification investments in Southeast Asia, planning to launch more new energy models to compete for the growing market. Furthermore, in response to policy adjustments in countries like Thailand and Malaysia, Japanese automakers are beginning to adjust their product lineups, promote battery localization production to qualify for policy incentives, and have even started incorporating Chinese parts suppliers into their supply chains within Southeast Asia to make local products more price-competitive.
Industry experts point out that 2026 will be a critical year for the competition between Chinese and Japanese automakers in the Southeast Asian market and a key period for Chinese brands to accelerate the expansion of their market footprint following their initial breakthrough. For Chinese automakers to achieve sustained growth, they need to focus on three key areas: First, managing the risks of price wars. As competition intensifies, pricing pressure will persist. Chinese automakers need to avoid getting trapped in low-level price wars through technological upgrades, product differentiation, and cost control to enhance profitability. Second, deepening localization capabilities. The increasingly refined policy adjustments in Southeast Asian countries place higher demands on automakers regarding local production, R&D, and supply chain layout. Only by achieving self-sufficiency in core components and localizing R&D can they enjoy long-term policy benefits and mitigate trade risks. Third, enhancing brand recognition. Although Chinese brands are experiencing rapid sales growth, there is still a gap compared to Japanese brands in terms of brand reputation and user loyalty. This gap must be bridged through high-quality product experiences, comprehensive after-sales service, and sustained brand marketing to elevate brand influence.