Thais woo China electric vehicle makers

Published on: Thursday, July 06, 2023

By: Bernama

Text Size:

Chinese car manufacturers investing in EV manufacturing in Thailand include BYD Auto, Great Wall Motor, SAIC Motor and NETA Auto. - FMT pic for illustration only

BANGKOK: Thailand, as the leading car production base in Southeast Asia and the fastest growing market for electric vehicles (EVs), will continue to attract manufacturers globally in its aim to promote and establish itself as a regional hub for EVs.

In the latest development of its policy to promote Thailand as a regional hub for EV, Board of Investment (BOI) held talks with two major Chinese EV manufacturers, Changan Automobile and Chery Automobile.

In a statement, BOI said the talks, which were held during an investment roadshow led by its Secretary General Narit Therdsteerasukdi to Chongqing and Chengdu, China from June 28 to 30, had focused on the policy and incentives for the EV and clean energy sectors.

“Our latest talks with these two major Chinese EV manufacturers confirmed Thailand’s potential to be a production and export base for right-hand drive EVs because of the readiness of our automotive ecosystem and the fact we are the fastest growing EV market in the region,” Narit said.

He said Chery Automobile, China’s fifth largest EV manufacturer, is very interested to invest in Thailand, a country the company sees as a strategic investment location to become a production base for right-hand drive electric cars for export around the world.

“Chery is in the process of negotiations with potential partners and considering suitable investment models in Thailand, and plans to enter the Thai market in early 2024 with the Chery Omoda 5 electric SUV as its first model,” he said.

At Changan Automobile, China’s sixth largest EV manufacturer, Narit held a meeting with Zhu Huarong, the company’s chairman and the senior management team.

He said Changan Automobile also confirmed its plan, first announced at the Shanghai Motor Show in April, to establish an EV factory in Thailand with an investment in the first phase of US$ 260 million, (about 9 billion baht).

“The preparation of the establishment of Changan’s Thai EV factory has made significant progress and is now only awaiting the final approval from the Chinese authorities.

“In addition, the company also plans to establish a research and development operation in Thailand in the future,” he said.

Industry data show that from January to June 2023, a total of 31,738 battery electric vehicles (BEV) cars have been registered in Thailand, more than three times the 9,729 registered in the whole of 2022.

Chinese car manufacturers investing in EV manufacturing in Thailand include BYD Auto, Great Wall Motor, SAIC Motor and NETA Auto.

During the first five months of 2023, Chinese companies have filed 93 applications for investment promotion with the BOI, worth a combined investment value of more than 31 billion baht.

BOI is a government agency which mission is to promote valuable investment into Thailand as well as Thai overseas investment.