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China's Zeekr, Xpeng ( XPEV ) debut at Bangkok Motor Show

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Thailand sees EV production capacity at 100,000 by year

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Japanese manufacturers have long dominated Thai auto

By Chayut Setboonsarng and Devjyot Ghoshal

BANGKOK, March 25 (Reuters) - Boosted by strong electric

vehicle sales, Chinese car makers will be in the spotlight at

the Bangkok International Motor Show this week, underscoring the

growing challenge to Japanese auto giants that have long

dominated Thailand's vehicle market.

Chinese automakers such as Geely's Zeekr and

state-owned Xpeng Motors are slated to unveil their latest EVs

to Thai customers as they debut at the Bangkok motor show, a

week-long expo that opens to public on Wednesday.

On Monday, at a media preview, the EV newcomers showcased

their cars and technology at slick booths shoulder to shoulder

with those from market leaders like Toyota Motor ( TM ) that

are household names in Southeast Asia's second-largest economy.

Hangzhou-headquartered Zeekr will launch two EV

models in Thailand in June and open 10 showrooms in the country

this year, as part of a wider expansion in Southeast Asia, Vice

President and Head of Emerging Market Mars Chen said.

Chen said Zeekr planned to position itself in the premium

segment: "In the premium segment, there's a lot of room for a

new player like us."

Zeekr will compete with Chinese companies like BYD

and Great Wall Motor that currently have

the biggest share of Thailand's EV market.

Guangzhou-based Xpeng ( XPEV ), which is showcasing a

flying drone car at its booth, plans to open five showrooms in

Thailand this year to offer higher-end EVs, said Elsa Zhang,

senior manager for its overseas business.

Chinese automakers have committed to invest more than $1.44

billion in production facilities in Southeast Asia's largest

auto manufacturing hub. Thailand is looking convert about 30% of

its annual vehicle production into EVs by 2030.

The expansion by Chinese EV makers in Thailand comes against

the backdrop of intensifying competition at home where car

makers are racing to cut prices.

In 2023, Thais bought 73,500 battery EVs, or about 9% of

domestic car sales, and that is expected to double by the end of

2024, according a Federation of Thai Industries forecast.

Local EV production capacity is expected to reach 100,000

cars by the end of 2024 as new facilities, mainly from Chinese

car makers, come online, said FTI's automotive industry

spokesperson, Surapong Paisitpattanapong.

Last year, Thailand produced 164 battery EVs.

"EV sales are rising while ICE vehicles sales are falling,"

Surapong said, referring to internal combustion engine vehicles

and attributing the change to the cheaper EV models.

"With that ICE car price, you can get a top EV model from

several brands. Higher gasoline prices are also helping EVs."

But market leaders like Toyota ( TM ), Isuzu Motors ( ISUZF ) and

Honda Motor Co ( HMC ) are also working to maintain their grip.

Major Japanese auto manufacturers are set to invest 150

billion baht ($4.34 billion) in Thailand over five years.

Isuzu ( ISUZF ) plans to use Thailand as a production base for an

electric version of its D-MAX pickup truck, with an aim to start

exports in 2025, a Thai government spokesperson said last week.

(Additional reporting by Orathai Orathai Sriring; Editing by

Himani Sarkar)