BYD avoids EU tariffs exporting EV cars from Thailand factory to Europe

BYD's Thailand factory has started shipping over 900 units of BYD Dolphin EVs to Europe for the first time, with destinations including the UK, Germany, and Belgium, BYD's Thai subsidiary announced on August 25 

BYD has exported vehicles from its Thailand electric vehicle (EV) factory to Europe for the first time. BYD's Thai subsidiary announced on August 25 that its local factory had produced and shipped its first batch of BYD Dolphin EVs to Europe. The first batch of 969 Dolphins left Thailand aboard BYD’s own vessel BYD Zhengzhou, the company's seventh car carrier vessel. This is the first time Zhengzhou has sailed from Thailand to Europe. 

The Rayong-based CKD factory, which began operations in July 2024, is BYD’s first fully-owned passenger car plant outside of China. With an annual production capacity of 150,000 vehicles, the site serves both the local Thai market and overseas exports. The factory is located within the WHA Rayong 36 Industrial Estate spanning nearly 960,000 square meters. The factory currently employs around 6,100 staff, with plans to expand to 10,000. Originally focused on right-hand drive vehicles for Thailand and ASEAN markets, the plant is now increasing output to serve LHD markets, including Europe. 

CKD (Completely Knocked Down) refers to a method where a vehicle is shipped in parts and assembled in the destination country. Automakers use CKD kits to reduce import tariffs and support local manufacturing. In July, the Thai plant reached the 90,000 delivery milestone, a year after it went into operation. “Following the delivery of our 90,000th NEV (New Energy Vehicle) in July, we are once again achieving a breakthrough". 

"The export of Thai-made Dolphin models to Europe for the first time not only represents another step forward in BYD’s globalisation strategy, but also underscores Thailand’s vital role in the global EV supply chain,” said Ke Yubin, general manager of BYD Thailand. China-made EVs face anti-subsidy tariffs imposed by the European Union last year. As BYD was cooperating with the investigation, they faced a lower additional tariff of 20.7% on top of the existing 10% customs duty. BYD sold 545,003 EVs overseas in the first seven months of the year (January – July). That is 133.5% up from the same period last year.