Chinese electric vehicle (EV) maker BYD Co. Ltd., which is backed by billionaire investor Warren Buffett’s Berkshire Hathaway(NYSE:BRK-A)BRK, is eyeing setting up a facility in Thailand.
What Happened: BYD, in a joint statement with Thai industrial developer WHA Group, announced that it has signed an agreement for 96 hectares (237 acres) of land in the eastern province of Rayong for the plant to produce 150,000 passenger cars a year from 2024.
Thailand's Board of Investment approved the project worth 17.9 billion baht ($491 million) to produce EVs last month. BYD aims to sell 10,000 units in Thailand and export to Southeast Asian and European countries from its Thailand facility. This came after China's biggest EV manufacturer recently announced its entry into several overseas markets, including Denmark, Germany, Israel, Japan, and Cambodia.
Why It's Important: Thailand is one of the most preferred choices among the world's top auto production companies, including Toyota and Honda, among others. The company also recently offered incentives, including tax breaks and subsidies, to attract EV makers such as Tesla Inc, Nio Inc, and Li Auto Inc.