On August 21, Toyota Motor Corporation announced plans to introduce its most affordable hybrid model in the Thai market and resume sales of its all-electric SUV, strengthening its foothold in Southeast Asia amid mounting competition from Chinese automakers.
The newly launched Yaris ATIV Hybrid sedan will start at 729,000 baht (approximately USD 22,379), undercutting Toyota's previous entry-level hybrid, the Yaris Cross Hybrid, by 60,000 baht. Toyota has set an initial sales target of 20,000 units in the first year. The model will be assembled at Toyota's plant in Chachoengsao province, with approximately 65% of components sourced locally, a figure expected to rise over time. In addition, Toyota plans to export this hybrid model to 23 markets, including other Southeast Asian countries, reinforcing Thailand's role as a key regional production hub.
At the same time, Toyota has reopened pre-orders for its bZ4X all-electric SUV in Thailand. The updated model, imported from Japan, will be priced at around 1.5 million baht, approximately 300,000 baht lower than when it was first introduced in 2022. Toyota aims to sell around 6,000 units of the new bZ4X in its first year, with deliveries expected to begin as early as November.
This dual strategy reflects Toyota's intensified efforts to position Thailand at the center of its regional electrification push. The company has been steadily increasing investments in the country, aiming to develop Thailand as a major hub for hybrid and electric vehicle production and exports, while countering aggressive moves by Chinese competitors such as BYD, SAIC's MG brand, and Great Wall Motors.
Industry data shows that Thailand's total new car sales stood at 572,675 units in 2023, down 26% year-on-year. In the first half of 2024, sales fell slightly to 302,694 units, a 2% decline from the previous year. However, electrified vehicles-both hybrids and battery-electric models-continue to grow rapidly, driven largely by Chinese brands. In the first half of this year, BYD captured an 8% market share in Thailand, MG 4%, and Great Wall 2%, bringing Chinese automakers' combined share to 16%. This surge has eroded the dominance once held by Japanese manufacturers, whose collective market share has dropped from about 90% a few years ago to 71% today.
Toyota remains the market leader with a 38% share, but faces pressure as stricter lending conditions impact pickup truck sales. Passenger cars, especially hybrids such as the Yaris series, have helped offset some of the decline. Still, low-cost electric models from Chinese brands are intensifying competition in the passenger car segment.
Industry observers note that recent setbacks for Chinese EV brand Neta in Thailand could dampen consumer confidence in certain Chinese-made models, creating an opportunity for established players like Toyota to leverage their strong brand reputation and robust after-sales network. Toyota has reaffirmed its commitment to offering reliable, affordable electrified vehicles as it works to maintain leadership in Thailand and across Southeast Asia.
