China’s Yadea Expands into Thailand to Challenge Honda in Electric Two-Wheeler Market

Yadea Technology Group, China’s largest two-wheeler manufacturer, is pushing deeper into Thailand as competition between Chinese and Japanese brands intensifies across Southeast Asia. At its newly opened factory in Samut Prakan province near Bangkok, local employees are assembling electric scooters on production lines that began operating in May. Although most parts are currently imported, the company aims to source up to 70% of components locally. Within three years, the plant is expected to turn out 600,000 vehicles and develop research and development capabilities. Thai regulators are anticipated to authorize sales as early as September.

The first model to reach the market will be the RS20 scooter, priced at 41,900 baht ($1,300), undercutting Honda’s leading gasoline scooter by almost 30%. While its maximum speed of 51 km/h lags behind some competitors, its driving range of 74 kilometers per charge is comparable. Yadea is also moving quickly to expand distribution and is in talks with local partners to open dozens of stores in Bangkok and other major cities before the year ends.

Thai consumers are gradually warming to electric mobility, with retailers expecting broader adoption over the medium term. Established in 2001, Yadea sold around nine million two-wheelers worldwide last year, dominating the low- to mid-price segment below 5,000 yuan (about 18 million VND). The company produces crucial parts like batteries and motors in-house, creating a mass production system that caters to China’s vast domestic market. For the first half of this year, revenue rose 33% to 19.1 billion yuan, while net profit surged 60% to 1.6 billion yuan.

The company’s strength lies in aligning technology with consumer trends. It was an early mover in sodium-ion batteries, a cheaper, fast-charging, and heat-resistant alternative, viewed as a promising option for affordable urban transport. Yadea is also testing battery-swapping systems, once developed with Gogoro, now being rolled out more extensively in Shenzhen, where delivery fleets such as Meituan are early adopters.

Having secured leadership at home, Yadea began its international expansion with Vietnam in 2019 and is now stepping up investments abroad. Beyond its Thai plant, the company has committed $150 million to boost production in Indonesia and has established facilities in Brazil and Mexico. This mirrors a broader trend of Chinese manufacturers building overseas capacity while boosting exports, as domestic market growth levels off. According to iResearch, China’s exports of electric two-wheelers are projected to grow 47% in 2024. While exports to North America dipped by 1%, shipments to Asia rose 4%, supported by government incentives promoting electric vehicles in several Southeast Asian markets.

Industry experts view Yadea’s strategy as modeled on BYD, China’s leading EV manufacturer, which successfully entered Thailand in 2022 by offering affordable yet high-performance electric cars. Yadea has similarly adopted a vertically integrated production system and competitive pricing to challenge incumbents. Thailand, where around 1.8 million two-wheelers are sold annually—making it the third-largest market in Southeast Asia after Vietnam and Indonesia—is dominated by Honda, which holds a 77% share. In response, Honda is preparing to launch local electric two-wheeler production this year.

Despite its global ambitions, Yadea remains heavily dependent on its domestic market, which still accounts for more than 95% of revenue, leaving it exposed to fluctuations in Chinese demand. Expansion into Europe and Latin America also requires overcoming stricter safety and environmental requirements as well as lingering skepticism toward Chinese products. Meanwhile, sodium-ion battery technology, though promising, continues to face limitations in energy density and will need time to demonstrate its long-term reliability.