BYD set to again overtake Tesla as top electric car seller

Worapong Phonmuangla, Managing Director of T. Krungthai Industries Public Company Limited, or TKT, told the Stock Vision news team that the government's measure to raise import tariffs on electric vehicles will create an opportunity for domestic plastic parts and mold manufacturers, as carmakers may increase the share of parts they purchase and outsource from local operators. Currently, TKT derives about 1% of its total revenue from plastic parts for electric vehicles, taking on work as a Tier 2 supplier through Tier 1 parts makers that are partners of Chinese EV brands, and it delivers parts to roughly one or two Chinese EV makers. Although the Chinese-brand EV market has potential thanks to the establishment of production bases in Thailand, it still faces intense price competition, while actual EV registrations in the country stand at only about 40,000 to 50,000 units, below the production targets set by carmakers. The company expects total revenue this year to be close to last year's level, in line with the target set at the start of the year, amid a slowdown in the domestic automotive industry. The Federation of Thai Industries has cut its 2026 car production forecast from 1.5 million units to about 1.45 million units, with production for export at about 1 million units, and domestic car sales lowered from an original target of 500,000 units to about 400,000 to 450,000 units. TKT is therefore focused on cost management and improving production efficiency, including negotiating selling price adjustments based on cost structure, or Cost Plus, finding new suppliers and alternative raw materials, controlling Standard Cost, investing in tools to improve machine efficiency and reduce waste, and training to develop employee skills, in order to maintain profitability.

Apichart Leesissaranukul, Chairman of Thai Stanley Electric Public Company Limited, or STANLY, said that the government's plan to consider restructuring import taxes on electric vehicles will be a positive factor for Thailand's automotive industry, as it helps create fair competition between imported cars and cars produced domestically, and supports domestic parts makers and suppliers. Initially, the import car tax structure is expected to be divided into three tiers: a rate above 20%, a middle rate of about 35%, which is the approach proposed by the Ministry of Finance, and a maximum rate of 50% for imported cars with no production base in Thailand. However, the details and clear tax rates still require clarity from the government and a resolution from the Cabinet. Apichart said the policy is likely to encourage Japanese carmakers to accelerate investment and launch more hybrid and EV models in Thailand, since Thailand still has strengths in infrastructure and the automotive supply chain. At present, leading carmakers still use Thailand as a production and export base for markets worldwide, such as Mitsubishi and Toyota. As for STANLY, the company is ready to support the automotive industry's transition, as it can produce parts and products for EVs, hybrids, and motorcycles, because its products share components, or commonality, and use electrical systems as a key element, allowing efficient management of the production process. Apichart added that STANLY is ready to take off immediately if the environment becomes favorable again, especially once financial institutions begin to ease lending and the economy recovers. The company aims to drive sales growth of a further 30%, while continuing to focus on keeping costs low and maintaining a strong financial position, with cash reserves of more than 10 billion to 15 billion baht, and will continue to pay dividends at a satisfactory level to shareholders.

Tesla is planning a more than 538,000-square-foot distribution center near Austin, Texas, according to a filing with the Texas Department of Licensing and Regulation. The project covers 538,720 square feet at the Mustang Ridge Distribution Center I, located at 6925 FM Road 1327 in Mustang Ridge, and carries an estimated construction cost of $1.44 million, with work scheduled to begin Dec. 7 and be completed Dec. 4, 2028. The filing describes the project as a new lease space build-out for Tesla in the existing Office/WHSE building and does not specify what products or materials Tesla will handle there or how many employees will work at the site. The facility adds distribution capacity near Tesla's Austin headquarters and Gigafactory Texas complex, which draw components from an extensive supplier network in Mexico spanning Nuevo León, Coahuila, Tamaulipas, Chihuahua, the Bajío region and the state of Mexico. In a separate development, Danfoss Climate Solutions launched a new production line at its manufacturing complex in Apodaca, Nuevo León, producing oil-free check and block valves for Danfoss Turbocor centrifugal compressors used in chillers and heat pumps, with 12 valve models made for North American original equipment manufacturers and about 80% of finished products ultimately exported, primarily to the U.S.