(Reuters) – Chinese electric vehicle manufacturers are pouring into Thailand, having committed to invest $1.44 billion in production facilities in Southeast Asia’s biggest automaking hub that has long been dominated by Japanese companies.
This new wave of investment has been backed by Thailand’s government, which has rolled out incentives and courted Chinese firms, with a target to convert about 30% of the country’s annual vehicle production into EVs by 2030.
INVESTMENTS UNDERWAY
China’s Great Wall Motor made an early punt on Thailand in 2020 when it acquired a factory from General Motors , where it will spend 22.6 billion baht ($647.38 million) turning it into a regional production centre for EV and hybrid cars.
The automaker will start producing its popular compact Ora Good Cat EV in Thailand next year, and is also bringing in its subsidiaries MIND Electronics, HYCET and Nobo Auto that make electronics, powertrains and seating.
Chinese rival SAIC Motor, which owns MG Motor and has a partnership with Thai conglomerate Charoen Pokphand Group, launched its first EV in the country in 2019.
It is investing 500 million baht to expand its existing plant for EV parts and battery manufacturing, the company said in April.
Chinese EV giant BYD is investing 17.9 billion baht to set up a new facility in Thailand that will start producing 150,000 passenger cars per year from 2024, some of which will be exported to Southeast Asia and Europe.
China’s Hozon New Energy Automobile is also working with Thailand’s Bangchan General Assembly to locally produce the electric NETA V model starting next year.
IN THE PIPELINE
Several deals are also in the pipeline, according to the Thailand Board of Investment (BOI), which has been pursuing Chinese automakers.
State-owned Chongqing Changan Automobile, which has partnerships with Ford and Mazda, will invest 9.8 billion baht to set up its first right-hand drive EV factory outside China, according to the BOI.
GAC Aion, a subsidiary of state-owned automaker Guangzhou Automobile Group (GAC) is planning to invest more than 6.4 billion baht to produce EVs in Thailand, the BOI said.
China’s Chery Automobile, which first rolled out a self-developed EV in 2009, is “very interested” to invest in Thailand and plans to enter the market early next year, according to the BOI.
Chongqing Changan, GAC and Chery did not respond to requests for comment on their plans for Thailand.
Chinese automaker Geely is also in the early stages of planning an entry into Thailand, Reuters reported in May, including weighing models for import and local manufacturing.
RISING POPULARITY
The influx of Chinese models appears to be helping to boost the popularity of EVs in Thailand, the second-largest car market in Southeast Asia.
In the first half of 2023, over 31,000 EVs were registered in Thailand, more than three times the number for all of 2022, the BOI said, citing industry data.
The price gap between EVs and combustion engine cars has also narrowed, in part because of government subsidies.
The cheapest variant of Great Wall’s Ora Good Cat – Thailand’s best-selling EV last year – currently costs around 828,500 baht, while Hozon’s NETA V is priced at 549,000 baht, according to company websites.
On Toyota’s Thailand website, the Corolla Altis is priced at 894,000 baht and the Yaris Ativ at 549,000 baht.
($1 = 34.9100 baht)
(Compiled by Devjyot Ghoshal in Bangkok; Editing by Jamie Freed)
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
