Chinese automotive manufacturer BYD has rejected suggestions from Washington that its manufacturing facility in Thailand is being used as a "back door" to evade significant US trade tariffs.

The denial follows a probe by the Office of the United States Trade Representative (USTR) under Section 301 of the Trade Act. The investigation is examining "structural excess capacity" across several major economies, including China, the European Union, and the Association of Southeast Asian Nations (ASEAN).

US officials have raised concerns that Thailand could be serving as a final assembly hub for surplus Chinese electric vehicles destined for global markets, including the United States.

Domestic focus and regional exports

BYD, which inaugurated its 96 hectare facility in Rayong's WHA Industrial Estate in July 2024, stated that its Thai operations are focused on domestic demand and selected international regions.

Liu Xueliang, General Manager of Asia-Pacific Auto Sales, told media sources that the company has not yet entered the US market.

He stated that protectionist measures adopted by the United States could encourage manufacturers to redirect resources towards the Asia-Pacific market.

The company confirmed that no vehicles were shipped to the United States.

Significant investment in Thailand

The Rayong plant represents an investment of approximately GBP 825 million (US$ 1.09 billion). The facility manages the full manufacturing lifecycle - stamping, welding, painting, and assembly - for models including the Dolphin, Atto 3, and Sealion 6 DM-i.

Ke Yubin, general manager of BYD Auto Thailand, stated that 92% of the plant's workforce comprises Thai nationals.

Global developments

The development comes amid broader activity involving BYD in international markets. The year also recorded a 150.7% increase in overseas sales outside mainland China compared with the previous year.