Chinese automaker BYD has denied allegations from the United States that its manufacturing facility in Thailand is being used to bypass American trade tariffs. The company said its Rayong plant is focused on domestic demand and exports to other regions, confirming that no vehicles from the site have been shipped to the United States. Get today's headlines by email The response follows an investigation by the Office of the United States Trade Representative (USTR) under Section 301 of the Trade Act. The probe is examining whether Southeast Asian countries are being used for the final assembly of surplus Chinese electric vehicles to circumvent US trade tariffs. US officials have raised concerns that Thailand could be serving as an assembly hub for Chinese EVs destined for global markets, including the United States. The inquiry is also assessing what it describes as “structural excess capacity” in the automotive sector across several economies, including China, the European Union and ASEAN nations. BYD said its Thai operations are centred on regional markets and not the US. The company inaugurated its 600-rai manufacturing facility in Rayong’s WHA Industrial Estate in July 2024 as part of its expansion strategy in Southeast Asia. Liu Xueliang, General Manager of Asia-Pacific Auto Sales, stated that BYD has not entered the US market. He suggested that American protectionist measures could encourage manufacturers to focus more strongly on the Asia-Pacific region. “We view this as an advantage for Thailand rather than a setback,” Liu said. According to the company, the Rayong facility exported 10,250 vehicles in 2025 to Europe, ASEAN countries and Oceania, while none were sent to the United States. The Thai factory represents an investment of approximately 35,925 million baht and has a maximum production capacity of 150,000 vehicles per year. The facility carries out the full manufacturing process, including stamping, welding, painting and assembly. Production at the plant includes several BYD models such as the Dolphin, Atto 3 and Sealion 6 DM-i. Ke Yubin, general manager of BYD Auto (Thailand), said the facility employs 6,100 staff, with 92% of workers being Thai nationals. The dispute comes as BYD continues to expand globally. In 2025 the company reported worldwide sales of 4.55 million vehicles, representing a 7.1% increase compared with the previous year. More than 2.25 million of those vehicles were pure electric models, exceeding Tesla’s reported 1.63 million units. Overseas sales outside mainland China surpassed one million vehicles for the first time in 2025, a 150.7% increase year-on-year. Thailand remains a key part of BYD’s international growth strategy. The company recorded nearly 50,000 vehicle sales in the Thai market last year. The Nation reported that the outcome of the USTR investigation could influence how Southeast Asian manufacturing hubs are viewed in global EV supply chains. For now, BYD maintains that its Thai plant is not involved in exports to the United States. Picture courtesy of The Nation Join the discussion? Already a member? Adapted by ASEAN Now Nation 16 Mar 2026
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