SAIC Motor, which makes MG-brand electric vehicles (EVs), is aiming to become the first domestic EV maker to export vehicles to the untapped European market.
Chinese electric vehicle makers are facing trade protection measures from European countries that could impose tariffs of up to 38 percent on Chinese imports, and Thai automakers should take advantage of the situation, SAIC Motor Group Vice President Suroji Sansunit said on Friday.
He said high tariff barriers and the requirement to disclose all the technology used in a product on import documents have forced Chinese automakers to set up manufacturing bases overseas.
Thailand can use this opportunity to become a manufacturing base for exporting Chinese-made EVs to Europe, he said, adding that to avoid EU trade protection measures, Chinese EVs made in Thailand must contain more than 40% locally-made parts and therefore be considered “Made in Thailand”.
Sroj noted that Chinese automakers are increasing their investments in Thailand to stimulate technological development for EV parts, allowing Thai manufacturers to meet the 40 percent product country of origin requirement.
“Thailand has never exported cars to Europe because there is no trade agreement between the two countries,” he said. “If Thailand starts exporting EVs to Europe, we can expect to face import tariffs of 10 to 20 percent.”
